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Silva Fennica 1926-1997
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Acta Forestalia Fennica
1953-1968
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Articles containing the keyword 'demand'.

Category: Research article

article id 700, category Research article
Riitta H. Hänninen. (1998). Exchange rate changes and the Finnish sawnwood demand and price in the UK market. Silva Fennica vol. 32 no. 1 article id 700. https://doi.org/10.14214/sf.700
This paper examines the long-run influence of exchange rate changes on the Finnish sawnwood price in the United Kingdom (UK) using quarterly data for the period 1978–1994. The degree of influence was measured by a pass-through coefficient (PT) obtained from a markup pricing relation of a system model. The model, which included export demand and price equations, was estimated with the cointegration method of Johansen. The results indicated a large PT, which means that exchange rate changes are reflected almost proportionately in Finnish export price expressed in pounds sterling. Thus, the Finnish price of sawnwood in pounds has lowered as a result of depreciation of the Finnish markka (FIM). This has improved Finnish competitiveness and market share in the UK. Appreciation of the FIM has had the opposite effect. It seems that Finnish exporters have made use of depreciations and devaluations of the FIM to maintain and increase their market shares but not necessarily their markups. For Finland, which is in the process of joining the European economic and monetary union (EMU), knowing the size of the PT is also important in assessing the economic impact of membership.
  • Hänninen, Forest Research Institute, Helsinki Research Centre, Unioninkatu 40 A, 00170 Helsinki, Finland ORCID ID:E-mail: riitta.hanninen@metla.fi (email)

Category: Article

article id 7134, category Article
Päiviö Riihinen. (1962). Sales of newsprint in Finland, 1949-1959: models for short term forecasting. Acta Forestalia Fennica vol. 74 no. 7 article id 7134. https://doi.org/10.14214/aff.7134

Short run market forecasting is desirable both for adjusting production and for regulating the national employment policy. In this study a forecast is made for one product. The purpose of the study is to develop a short run model describing newsprint sales in Finland that will combine mathematical simplicity, accuracy of description and universality.

Two methods of selecting variables seemed to be available. According to the first, newsprint consumption is divided into components, each of which is considered separately. The second method, which proved more fruitful, starts out directly from factors influencing the publishers’ decisions in purchasing newsprint, eliminating the least significant intuitively and simultaneously determining the lags.

The models developed in this study are capable of forecasting potential consumption. Even the best models in this study are multicollinear. The further into the future a forecast is extended, the greater is the possibility that relationships between the explanatory variables will change. It is intended that the newsprint seller will profit from the models achieved by using them to forecast sales in a future period, so that he can avoid both loss of interest due to acquiring a surplus of raw material or acute shortages of raw material.

The PDF includes a summary in Finnish.

  • Riihinen, ORCID ID:E-mail:
article id 7126, category Article
Viljo Holopainen. (1960). On the price elasticity of the supply of sawn wood for export. Acta Forestalia Fennica vol. 73 no. 4 article id 7126. https://doi.org/10.14214/aff.7126

The present investigation is concerned with the price elasticity of sawn wood, concentrating on the price elasticity of sawn wood supply for export. The supply of sawn wood for export is referred to the joint attitude to price changes of all producers participating in the market.

The study concludes that producers cannot in the short- and medium-term view use the price parameter to increase total utilization in the sawn wood market. Demand holds a primary position in price formation. The capacity reserve of the sawmills permits great variations in output at the mill level, and thus elasticity in the supply of sawn wood. High timber costs are typical for the industry. Supply of roundwood can easily be adapted even to large variations in demand. The price elasticity of roundwood supply is rather great.

The long process of sawn wood production and the resulting relatively long lead-time of deliveries result in a long adaptation time of supply. Expansion and contraction of sawn wood exports cause, via the effect of exports, on income similar fluctuations in the domestic sales of sawn wood. This weakens the price elasticity of exports in some degree.

The ‘instantaneous elasticity’ upwards of sawn wood supply might be great, but speculation with stocks at the different levels of production often makes it ‘incalculable’. The price elasticity of a medium-long and long period can be expected to be relatively great upwards. The downward elasticity of a period of medium length is probably small. The elasticity of a prolonged period may be influenced by the substitution of other materials for sawn wood.

The PDF includes a summary in Finnish.

  • Holopainen, ORCID ID:E-mail:
article id 7448, category Article
Viljo Holopainen. (1954). Suomen havusahatavaran viennin kausimaisuus. Acta Forestalia Fennica vol. 61 no. 36 article id 7448. https://doi.org/10.14214/aff.7448
English title: The seasonal fluctuations in the Finnish exports of sawn softwood.

The purpose of the investigation was to examine the seasonal pattern in Finnish export shipments and export sales of sawn softwood in 1927-1953. Statistics concerning shipments have been obtained from the Board of Customs, and material relating to sales has been provided by the Finnish Sawmill Owner’s Association (now Finnish Sawmills Association). On the basis of original monthly statistics, 13-month moving averages were computed. Finally, a seasonal index was calculated.

According to the results, the export shipments have a fairly apparent seasonal pattern with very low figures from January to April, a peak from June to August, and thereafter a gradual decline up to the end of the year. There are also considerable variations from year to year but in general the exports follow this rhythm. In contrast to export shipments the seasonal pattern of export sales is characterised by significant irregularity. Market developments and speculation play a far greater role than the seasonal factors. Indeed, a seasonal character in export sales can scarcely be discerned.

The Acta Forestalia Fennica issue 61 was published in honour of professor Eino Saari’s 60th birthday.

The PDF includes a summary in English.

  • Holopainen, ORCID ID:E-mail:
article id 7413, category Article
V. Pöntynen. (1954). Tutkimuksia Suomen teollisuuden vuonna 1950 käyttämistä polttoaineista. Acta Forestalia Fennica vol. 61 no. 1 article id 7413. https://doi.org/10.14214/aff.7413
English title: Investigations into industrial fuel in Finland in 1950.

The use of imported fuels has increased in Finland, which has resulted in a growing disregard of domestic fuels, primarily firewood, on fuel market. This has affected forest management and economy of forest owners as well as diminishing the working opportunities in the countryside by decreasing the demand of small-sized timber. This investigation studies the fuel problem in the industrial field by a survey sent to all industrial plants in the country.

The different fuels were converted to the calorific value of pine firewood measured in piled cubic meters (p-m3, cu.m.). In 1950 the industry utilized 14.1 million cu.m piled measure of imported and domestic fuels. Of this 47% was domestic fuels and 53% imported fuels. The share of coal was 40%, wood waste almost 30%, and firewood 18%. The relatively small proportion of firewood suggests that it could be possible to increase the industrial demand for firewood. However, it should be noted that industry uses fuel mainly for power production, where imported fuels are highly effective. Forest industry used 2/3 of all domestic fuel.

According to the report, waste wood was cheapest kind of fuel for industry. It was, however, often the plant’s own waste material. The cost of coal at the mill was 60% of the corresponding price of firewood. The location of the industry affects greatly the price relations between domestic and imported fuels. Coal is cheaper close to the harbours and the coastline of the country. The state has supported firewood transportation by lower freight rates for firewood.

The PDF includes a summary in English.

  • Pöntynen, ORCID ID:E-mail:
article id 7405, category Article
Viljo Holopainen. (1950). Eräiden Suomen kaupunkien halkojen hankinta-alueet : markkinatieteellinen tutkimus. Acta Forestalia Fennica vol. 59 no. 1 article id 7405. https://doi.org/10.14214/aff.7405
English title: The firewood supply areas of four Finnish towns.

In the present investigation, the problems connected to demand of firewood are dealt with by studying the fuel markets of the three biggest towns in Finland – Helsinki, Turku and Tampere as well as those of Vaasa. The purpose of the investigation was to study the firewood supply areas in two time periods, in 1933-1939 and in 1945-1947, after the Second World War.

Railway and shipping were the most important ways for transporting firewood in 1933-1939. Towards the end of the period, road transport increased especially in Turku and in Vaasa. In 1945-47 almost 90% of the firewood transported to Helsinki, 60% to Tampere and Turku, and over 50% of the firewood transpors to Vaasa were carried by rail. One factor supporting rail transport was that the tariff policy of the State Railways gave preference to firewood transports.

The supply areas increased markedly from 1933-1939 to 1945-1947. Supply of firewood near the towns in the southern, southwestern and western parts of the country was small. Also, pulp industry began to use small-sized timber in 1930s, which increased competition of the wood. Coal and coke began to replace firewood in the 30s, but their use decreased during and after the war due to supply shortage.

The PDF includes a summary in English.

  • Holopainen, ORCID ID:E-mail:
article id 7387, category Article
L. Runeberg. (1946). Trade in forest products between Finland and the United States of America. Acta Forestalia Fennica vol. 54 no. 1 article id 7387. https://doi.org/10.14214/aff.7387

The purpose of the analysis presented in the article was to form an estimate as to future Finnish-American trade in forest products. The Finnish-American trade, that had its beginning in 1919, has been steadily growing and at the outbreak of the Second World War occupied third place in Finland’s total foreign trade. Over 90% of the Finnish exports consisted of forest industry products, pulp and newsprint being the most important items. The sales associations of the pulp and paper industries made it possible for the industries to gain a footing in the American market.

The production of pulp and most kinds of paper has increased in the USA up to 1942, but production of newsprint has tended to decrease. The timber resources of the country are large, but there is a considerable timber deficit in the northeastern states, therefore, these regions must be the principal aim for a campaign to build up the future market. According to the survey of future need of imports to the USA, more than two million tons of pulp and 2-3 million tons of paper products are needed in the immediate post-war period. The Canadian and Swedish competition will remain at about the same level, but one Finnish advantage, the quality, has disappeared on account of the progress made by research in the USA during the war.

The PDF includes a summary in Finnish.

  • Runeberg, ORCID ID:E-mail:
article id 7306, category Article
Ilmari Vuoristo. (1934). Sahatukkien teko- ja ajopalkat todellista työvaikeutta vastaaviksi. Acta Forestalia Fennica vol. 40 no. 29 article id 7306. https://doi.org/10.14214/aff.7306
English title: Felling and hauling wages that correspond the actual requirements of the work.

Forest work in Finland has generally been paid by the job. The wages in 1930s were based on variable measuring units and principles in different parts of the country. The rates did not often take into account how difficult the individual stands are to harvest. The studies have shown that the productivity of logging depends on size of the stems, density of the stand, branchiness of the trees, terrain and depth of snow cover. The article suggests a wage system which takes into account the differences of the cutting areas.

Wages of felling and hauling logs that are payed per the trunk or cubic meter should be adjusted so that the earnings of an employee depends not on the quality of the stand. The quality of the stand influences the stumpage price of the wood, because of the versatile harvesting costs. If the demands of the job in a challenging stand are not compensated for the workers, the higher harvesting costs are inequitably balanced by lowering the wages of the forest workers.

The PDF includes a summary in German.

  • Vuoristo, ORCID ID:E-mail:
article id 5295, category Article
J. E. de Steiguer, J. P. Royer. (1986). Increasing forestry investments by means of public policy programs. Silva Fennica vol. 20 no. 4 article id 5295. https://doi.org/10.14214/sf.a27751

In 1979, the Federal Research in the United States instituted a so-called ”tight money” policy which led to a decrease in the demand for stumpage. The decrease in demand brought about lower stumpage prices and, consequently, a waning interest in policies to stimulate NIPF production. The authors report on five recent studies on NIPF behaviour and raise concerns that increases in demand for housing may bring new pressure upon NIPF as a source of wood.

  • Steiguer, ORCID ID:E-mail:
  • Royer, ORCID ID:E-mail:
article id 7664, category Article
Marko Katila, Päiviö Riihinen. (1990). Modeling newsprint consumption: a Finnish case study for the period 1960-1986. Acta Forestalia Fennica no. 217 article id 7664. https://doi.org/10.14214/aff.7664

Factors determining newsprint consumption in Finland in 1960–1986 were analysed. An econometric recursive multi-equation model describing the structure of the newspaper industry was formulated and estimated to obtain information on direct factors influencing newsprint demand. Short-term and long-term demand elasticities for newspapers and newspaper advertising were estimated.

The results indicate that the main factors affecting newsprint consumption are total circulation of newspapers, volume of newspaper advertising and the change in newsprint substance weight. Total newspaper circulation was found to depend on the rate of household formation and real household income changes. Demand for newspapers was shown to be price-inelastic. Structural analysis indicates that income elasticity of newspaper demand has increased slightly over time.

The volume of newspaper advertising was shown to affect newsprint consumption via the effects on pagination. Newspaper and television advertising were found to be independent of each other. The impact of the reduction in the basis weight was found to be substantial. The estimation of long-term elasticities of demand for newspapers and newspaper advertising using dynamic models revealed that demand rigidities exist.

The case study of Finland proposes three reasons why newsprint demand has not shown clear signs of reaching a saturation level. First, although population growth has stagnated in major consuming countries, the number of households has been increasing continuously. Second, income elasticity of newspaper demand does not show a declining trend. Third, the main driving force behind the buoyant demand is the resurgence of demand for newspaper as an advertising medium. In forecasting newsprint consumption, in addition to projections of economic growth, attention must be paid to the rate of household formation, the development of the advertising sector, the factors affecting competition between alternative media and the resulting media-mix in advertising, and changes in the substantial weight.

The PDF includes a summary in Finnish

  • Katila, ORCID ID:E-mail:
  • Riihinen, ORCID ID:E-mail:
article id 7658, category Article
Lauri Hetemäki. (1990). Factor substitution in the Finnish pulp and paper industry. Acta Forestalia Fennica no. 211 article id 7658. https://doi.org/10.14214/aff.7658

The study examines the factor demands of the Finnish pulp and paper industry. In the theoretical part of the study, factor demand equations are derived using neoclassical production theory. In the empirical part, econometric factor demand model is estimated using annual time-series data for the period 1960–86. The relationship of factor demands and their prices are examined in terms of own price, cross price and substitution elasticities.

It is assumed that the ”representative firm” in the pulp and paper industry is minimizing its costs of production at a given output level. In addition, a number of other assumptions are made which enable the production technology to be represented by a cost function, in which the inputs are capital, labour, energy and raw materials. From the cost function, the factor demand equations, i.e., the cost share equations are derived by applying Shephard’s lemma. The equations are transformed to estimable form using translog approximation for the underlying factor share functions.

The study differs from the previous factor demand studies by applying the error correction model based on the Granger Representation Theorem and the results of the cointegration literature to model the dynamics of the factor demand. This approach provides a statistically consistent method for estimating the long-run static factor demand equations and the corresponding short-run equations. In general, the econometrics of integrated processes (e.g. stationarity and cointegration tests) applied in the present study have not been applied before in factor demand systems models.

The empirical results of the study indicate that the error correction approach can be applied to estimations of the factor demands for the pulp and paper industry. In both industry sectors, the adjustment to short run disequlibrium (price shocks) appears to be fairly rapid. The most significant results of the calculated elasticities are that the factor demands of pulp and paper industries clearly react to changes in factor prices and that there are significant substitution possibilities between the different inputs. The absolute values of the elasticities are, on average, somewhat larger than have been obtained in previous studies.

The PDF includes a summary in Finnish.

  • Hetemäki, ORCID ID:E-mail:
article id 4624, category Article
Polttoainekomitea. (1952). Polttoainekysymys vuonna 1951 : polttoainekomitean mietintö. Silva Fennica no. 74 article id 4624. https://doi.org/10.14214/sf.a9096
English title: The fuel question in Finland in 1951.

The government of Finland appointed a committee to make a suggestion of measures to be taken to arrange fuel supply during the heating season. The committee drafted also a plan to regulate and govern the fuel economy.

The committee estimated that the total consumption of coal, coke, firewood, waste wood and fuel peat, converted into pine firewood increased from 33.8 million eu.m in piled measure in heating period of 1952-53 to 42.9 million in 1955-56. According to the report, the demand of fuel is met increasingly through imported fuels, such as coal, coke and oil. The change is mainly due by their lower price and technically easy handling compared to domestic fuels.

The committee suggests that the production of domestic fuels, peat and firewood, should be increased and rationalized. In addition, financial support should be targeted to construct hydroelectric plants. Fuel peat industry should be developed further. The use of oil should be promoted, and boilers able to use different kinds of fuel should be constructed. To be prepared in changes in international situation, stocks of fuel are needed.

  • Polttoainekomitea, ORCID ID:E-mail:
article id 4599, category Article
Polttoainekomitea. (1950). Polttoainekysymys vuonna 1949 : polttoainekomitean mietintö. Silva Fennica no. 67 article id 4599. https://doi.org/10.14214/sf.a9090
English title: The fuel question in 1949.

Fuel shortage during and after the Second World War compelled the Government of Finland to improve the fuel supply. In 1948 the Government appointed a Committee to draft a proposal on use of domestic and imported fuels. Special attention was placed on how to develop use of peat as fuel.

In rural districts, firewood billets and waste wood accounted for 45% of fuel consumption. For other users than the rural population, coal and coke consisted 25%, industrial waste wood 11% and billets 18% of the total consumption in 1938. After the war the use of coal and coke increased and the use of billets decreased.

Due to the decreased demand of billets, their price in the towns fell lower than the production and transport costs from the most remote areas where the wood was harvested. The demand for small sized timber is important for silvicultural reasons, and wood harvesting creates jobs for the rural population, therefore, the Committee proposes that the state supports the production of billets. This could be done by improving the effectiveness of firewood loggings, and by building truck roads and railways.

Small-sized birch is used predominantly as fuel. The Committee considers the growing stock of birch to be the largest unutilized wood reserve. Supported by technological research, it may become a new raw material for sulphate cellulose industry. Use of industrial waste wood as fuel and improvement of heating equipment would improve the competitiveness of fuelwood and peat against other fuels. For the possible interruptions in imports, stocks of foreign fuels should be maintained.

The article includes a summary in English.

  • Polttoainekomitea, ORCID ID:E-mail:
article id 4581, category Article
V. Lihtonen. (1945). Metsäteollisuusyhtiöiden metsistä ja niiden hakkuista. Silva Fennica no. 61 article id 4581. https://doi.org/10.14214/sf.a9085
English title: Forests of woodworking industry and the fellings carried out in them.

The aim of this treatise is to describe forests owned by timber companies, their area and position, the quality of forests, the condition of the forests, and fellings carried out during the World War II.

Area of the company-owned forest was 1,95 million hectares, 1,64 million hectares of which was productive and 0,31 hectares inferior forest soil, not including the areas lost after the war. Most of the forests were situated in remote regions. Average volume of the tree stands was slightly larger than in farm-owned forests. Fellings counted for 84% of the growth of the forests.

During the war  the state set felling quotas for both company, private and state forests. It was widely discussed how well they were met by the different owner groups. According to the statistics, the companies had followed relatively closely their cutting plans in peace years. Cuttings were highest in 1939, when the war begun. In the war years 1940-43, lack of workforce, horses and cars for transport complicated logging. The fellings increased again during truce after Winter War. Especially demand for small timber increased during the war. Felling of firewood increased in all the owner groups, in particular in the private forests that were situated near settlements. in general fellings were higher in forests that were easiest to reach.

During the war the companies acquired timber more from their own forests. The fellings from company forests were in war years 70% of those in peace years. The article concludes that companies fulfilled the requirements as well as it was possible in the circumstances.

The article includes an abstract in English.

  • Lihtonen, ORCID ID:E-mail:
article id 4472, category Article
Pienpuukomitea. (1933). Pienpuukysymys. Silva Fennica no. 31 article id 4472. https://doi.org/10.14214/sf.a9044
English title: The small timber problem.

A Committee was appointed in 1931 to prepare a program to improve the trade of small timber and to develop Finnish fuels and their production. The low demand for small timber is caused by the reduced export of Egyptian balks, and decreased demand of fuel wood that have been replaced by the imported fuels, like coal. At the same time, the supply of small timber has grown significantly due to increased thinnings, and better transport facilities that have made timber more accessible. Also, decreasing demand of large timber has increased the supply of small timber. The demand of small timber concentrates on Norway spruce (Picea abies (L.) H. Karst.). The sales of small timber are crucial from the silvicultural point of view. Selection felling of large timber in the past has reduced the supply of logs and led to surplus of small timber.

The article discusses the uses of small timber and potential new fields, such as wood sugar as fodder or refining wood as fuel. The use of timber should be promoted especially in the domestic industry. The Committee suggests funding for an additional forestry teaching post in the University of Technology, for forest technology and forest economics research in the Forest Research Institute, for research in wood technics, and for follow-up of forest sugar and wood gas fields.

The PDF includes a summary in English.

  • Pienpuukomitea, ORCID ID:E-mail:

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