Current issue: 54(5)

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Silva Fennica 1926-1997
Acta Forestalia Fennica

Articles by A. Maarit I. Kallio

Category: Research article

article id 286, category Research article
Riitta Hänninen, A. Maarit I. Kallio. (2007). Economic impacts on the forest sector of increasing forest biodiversity conservation in Finland. Silva Fennica vol. 41 no. 3 article id 286.
In the next coming years, political decisions will be made upon future actions to safeguard forest biodiversity in Southern Finland. We address the economic consequences on the Finnish forest sector of conserving additional 0.5% to 5% of the old growth forest land in Southern Finland. The impacts on supply, demand and prices of wood and forest industry production are analysed employing a partial equilibrium model of the Finnish forest sector. An increase in conservation raises wood prices and thus the production costs of the forest industry. This makes sawnwood production fall, but does not affect paper and paperboard production. The forest owners’ aggregated wood sales income is unaffected or slightly increased, because an increase in stumpage prices offsets the decrease in the harvests. If conservation increases wood imports, negative effects on forest industry become smaller whereas aggregated forest owners’ income may decline depending on the magnitude of import substitution.
  • Hänninen, Finnish Forest Research Institute, Unioninkatu 40 A, FI-00170 Helsinki, Finland ORCID ID:E-mail: (email)
  • Kallio, Finnish Forest Research Institute, Unioninkatu 40 A, FI-00170 Helsinki, Finland ORCID ID:E-mail:
article id 598, category Research article
A. Maarit I. Kallio. (2001). Interdependence of the sawlog, pulpwood and sawmill chip markets: an oligopsony model with an application to Finland. Silva Fennica vol. 35 no. 2 article id 598.
The interdependence of the markets for pulpwood, sawlogs and sawmill chips is analysed using a short-run model, which accommodates the alternative competition structures of wood buyers. We propose that imperfect competition in the pulpwood market tends to make the sawmills owned by the pulp and paper companies larger than the independent ones, even in the absence of transactional economies of integration. The impact of the wood market competition pattern on the profits of the forest owners and forest industry firms depends upon a firm-capacity structure, wood supply elasticities, and business cycles in the output markets. The numerical application of the model to the Finnish softwood market suggests that inflexibility of production capacities tends to make the wood demand rather insensitive with respect to price. Only the large firms, which all produce both pulp and sawnwood, may have oligopsony power under some conditions. Integrated production can increase competition in the sawlog market via the wood chip market.
  • Kallio, Helsinki School of Economics, Department of Economics and Management Science, P.O. Box 1210, FIN-00101 Helsinki ORCID ID:E-mail: (email)

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