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Wood fuel markets in Northern Europe

price formation and internationalization

Olsson, Olle (2012). Wood fuel markets in Northern Europe. Diss. (sammanfattning/summary) Skinnskatteberg : Sveriges lantbruksuniv., Acta Universitatis Agriculturae Sueciae, 1652-6880 ; 2012:39
ISBN 978-91-576-7675-7
[Doctoral thesis]

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High fossil fuel prices and ambitions to reduce greenhouse gas emissions have increased demand for renewable energy and are changing wood fuel market structures. Wood fuels are to a rapidly growing degree used in industrial proportions and traded in commercial markets. Wood fuels are seen as a key component to achieve policy goals related to climate change, especially in the EU. In the six papers that form the basis for this thesis, prices of wood fuels in Northern Europe are analyzed by means of time series analysis to increase understanding about the factors that govern market development. In Paper I, it is found that whereas the Austrian and German residential-quality wood pellet markets are integrated, Sweden is a separate market. The conclusion from Paper II is that despite a long history of trade in wood fuels between Estonia and Sweden, the two markets cannot be considered integrated. The results from Paper III indicate that refined and unrefined wood fuels should be seen as two separate markets, and that forest chips prices follow different trajectories depending on whether they are used in district heating or in forest industries. In Paper IV, it is acknowledged that although high and volatile oil prices are an important driver for the growth in demand for wood fuels, no significant spillover from oil price developments into Swedish wood fuel prices could be discerned in the time period 1993-2010. In Paper V, the conclusion is that prices of industrial roundwood and unrefined wood fuels followed a common trend in Sweden in the first decade of the 21st century. Paper VI shows that there is a significantly higher level of market maturity and internationalization in the Danish wood pellet market compared to the wood chip market in the country. In conclusion, this thesis uncovers some of the mechanisms that affect wood fuel markets, including the differences between unrefined wood fuels – such as wood chips – and the dynamic market for wood pellets. Whereas unrefined wood fuel markets still are mainly national, wood pellet markets are becoming internationalized. As for external impacts on wood fuel prices, the influence of forest products markets seem hitherto have been more important than oil price fluctuations. Wood fuels can be an important part of the future European energy system, but the complexities of the markets must be understood more thoroughly to ensure efficient resource utilization.

Authors/Creators:Olsson, Olle
Title:Wood fuel markets in Northern Europe
Subtitle:price formation and internationalization
Series Name/Journal:Acta Universitatis Agriculturae Sueciae
Year of publishing :9 May 2012
Number of Pages:77
IOlsson, O, Hillring B, Vinterbäck J (2011) European Wood Pellet Market Integration – A Study of the Residential Sector. Biomass and Bioenergy35(1), 153-160
IIOlsson, O, Hillring B, Vinterbäck J. (2012) Estonian-Swedish Wood Fuel Trade and Market Integration: A Cointegration Approach. International Journal of Energy Sector Management 6(1), p. 75-90
IIIOlsson O & Hillring B (2012b) Price Relationships and Market Integration in the Swedish Wood Fuel market. (accepted for publication in Biomass & Bioenergy after revisions)
IVOlsson O & Hillring B (2012c) The Effect of Crude Oil Price Fluctuations on Wood Fuel Prices (manuscript)
VOlsson O & Hillring B (2012d) Price Relationships Between Wood Fuels and Industrial Roundwood (manuscript)
VIOlsson O & Hillring B (2012e)The Danish Wood Fuel Market – Price Developments, Market Efficiency and Internationalization (manuscript)
Place of Publication:Skinnskatteberg
Publisher:Skogsmästarskolan, Sveriges lantbruksuniversitet
ISBN for printed version:978-91-576-7675-7
Publication Type:Doctoral thesis
Full Text Status:Public
Agris subject categories.:E Economics, development, and rural sociology > E71 International trade
E Economics, development, and rural sociology > E72 Domestic trade
K Forestry > K01 Forestry - General aspects
K Forestry > K50 Processing of forest products
P Natural resources > P05 Energy resources management
P Natural resources > P06 Renewable energy resources
Subjects:(A) Swedish standard research categories 2011 > 4 Agricultural Sciences > 401 Agricultural, Forestry and Fisheries > Forest Science
(A) Swedish standard research categories 2011 > 4 Agricultural Sciences > 405 Other Agricultural Sciences > Renewable Bioenergy Research
(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Economics
Agrovoc terms:fuelwood, markets, price formation, time series analysis
Keywords:Bioenergy, wood fuels, market integration, price formation, time series analysis, prices, cointegration
Permanent URL:
ID Code:8859
Department:(S) > School for Forest Management
Deposited By: Unnamed user with email olle.olsson@et.slu.se
Deposited On:10 May 2012 08:59
Metadata Last Modified:02 Dec 2014 10:50

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