Structural changes in Swedish wastepaper demand: A variable cost function approach

Lundmark R & Soederholm P (2003). Structural changes in Swedish wastepaper demand: A variable cost function approach. Journal of Forest Economics 9 (1): 41-63. DOI:10.1078/1104-6899-00022.

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Abstract

The primary purpose of this paper is to analyse the short-run price responsiveness of wastepaper demand in Sweden for four different paper and board products, as well as any structural changes in demand behaviour for these products over time. The analysis is done within a variable Translog cost function model, and we employ data for individual paper and board mills over the time period 1974-1994. The results suggest that the short-run own-price sensitivity of waste paper demand is relatively high compared to those of other input factors, and it has also tended to increase over time for some of the paper products. In addition, wastepaper demand has also become more sensitive to changes in energy prices, and its use increases with increases in the price of energy. However, the relationship between wastepaper and woodpulp is more complex, and in many instances wastepaper and woodpulp are short-run complements. Overall this implies that price based recycling policies will be relatively successful in promoting wastepaper use, but they will not necessarily lead to the conservation of virgin forest resources.

Item Type: Article
Uncontrolled Keywords: wastepaper; demand; pulp and paper; translog cost function; factor substitution; price elasticities; Sweden
Research Programs: Forestry (FOR)
Bibliographic Reference: Journal of Forest Economics; 9:41-63 [2003]
Depositing User: IIASA Import
Date Deposited: 15 Jan 2016 02:15
Last Modified: 05 Sep 2016 12:00
URI: http://pure.iiasa.ac.at/6901

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