Anssi Ahtikoski, Kari Väätäinen, Perttu Anttila, Juha Laitila, Antti Mutanen, Jari Lindblad, Lauri Sikanen, Johanna Routa. (2024). The effects of the EU’s forest-related policies on harvesting costs in Finland. Silva Fennica vol. 58 no. 3 article id 23018. https://doi.org/10.14214/sf.23018

Keywords: forests; scenario approach; harvesting costs; directives and regulations; EU legislation; structural systems analysis

Highlights: The EU’s forest-related policies set direct and indirect limitations on the harvesting operations and operating environment; The effect on harvesting costs of Directives and Regulations depends on the magnitude of policy implementation; In a high-impact scenario, harvesting costs could increase by as much as 18% from the current level of costs.

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The EU’s influence on national forest policies is growing, and the implementation of forest-related policies proposed by the Commission will affect the practice of forestry in Europe. For instance, the Nature Restoration Law sets concrete areal goals for restoring forest ecosystems and for conservation, the Deforestation Regulation requires meticulous tracking of wood’s origin, and the renewed Renewable Energy Directive (RED III) sets new criteria to sustainable forest biomass procurement. So far there have been no studies that have looked into the impacts from the economic and operational point of view. In this study, structural systems analysis was first performed to discover the relevant variables (and their functioning) associated with the roundwood harvesting operations and the operating environment. A scenario approach was then applied to capture the potential levels of implementation of the EU’s forest-related policies. Finally, using different scenarios (low-, moderate- and high-impact) and a systems analysis framework, the impact of alternative levels of implementation was quantified in terms of harvesting costs, measured in € m^–3. The results indicate that with the low- and moderate-impact scenarios the harvesting costs would increase by less than 10% from the current levels in three different regions in Finland. Such an increase (less than 10%) could be tolerated over a period of a few years, but a sudden increase is likely to lead to challenges to the running of businesses. With the high-impact scenario the harvesting costs would increase by between 15% and 18%, depending on the region. This magnitude of increase (of approximately a sixth) corresponds to a severe change in the roundwood harvesting operations and operating environment.

Ahtikoski, Natural Resources Institute Finland (Luke), Tekniikankatu 1, FI-33720 Tampere, Finland https://orcid.org/0000-0003-1658-3813 E-mail: anssi.ahtikoski@luke.fi
Väätäinen, Natural Resources Institute Finland (Luke), Yliopistonkatu 6, FI-80100 Joensuu, Finland https://orcid.org/0000-0002-6886-0432 E-mail: kari.vaatainen@luke.fi
Anttila, Natural Resources Institute Finland (Luke), Latokartanonkaari 9, FI-00790 Helsinki, Finland https://orcid.org/0000-0002-6131-392X E-mail: perttu.anttila@luke.fi
Laitila, Natural Resources Institute Finland (Luke), Yliopistonkatu 6, FI-80100 Joensuu, Finland E-mail: juha.laitila@luke.fi
Mutanen, Natural Resources Institute Finland (Luke), Yliopistonkatu 6, FI-80100 Joensuu, Finland https://orcid.org/0000-0003-0533-9356 E-mail: antti.mutanen@luke.fi
Lindblad, Natural Resources Institute Finland (Luke), Yliopistonkatu 6, FI-80100 Joensuu, Finland https://orcid.org/0009-0003-6766-6587 E-mail: jari.lindblad@luke.fi
Sikanen, Natural Resources Institute Finland (Luke), Yliopistonkatu 6, FI-80100 Joensuu, Finland E-mail: lauri.sikanen@luke.fi
Routa, Natural Resources Institute Finland (Luke), Yliopistonkatu 6, FI-80100 Joensuu, Finland https://orcid.org/0000-0001-7225-1798 E-mail: johanna.routa@luke.fi

article id 51, category Research article

Sanna Hautamäki, Antti Mutanen, Jari Viitanen. (2012). Substitution in the Finnish forest industry’s roundwood procurement. Silva Fennica vol. 46 no. 3 article id 51. https://doi.org/10.14214/sf.51

Keywords: roundwood procurement; imports; substitution; translog cost function

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In this study, the interaction and substitution between domestic and imported roundwood in the Finnish forest industry’s wood procurement is analysed by timber assortments. The results from the translog cost function approach and quarterly data of the total wood procurement and its components during the euro regime indicate that, to a certain extent, the Finnish forest industry has had the possibility of substituting imported roundwood volumes between countries in the Baltic Sea region. Contrary to earlier studies, also in the case of Russian birch pulpwood, the most important imported timber assortment, the results suggest that Russian birch pulpwood has rather substituted for than complemented the domestic supply in Finland. The increase in roundwood export duties in Russia has had a statistically significant effect on the trade in birch pulpwood and spruce sawlogs. Moreover, the results confirm the earlier findings of a rigid demand for roundwood in Finnish roundwood markets.

Hautamäki, Finnish Forest Research Institute, Joensuu Unit, P.O. Box 68, FI-80101 Joensuu, Finland E-mail: sh@nn.fi
Mutanen, Finnish Forest Research Institute, Joensuu Unit, P.O. Box 68, FI-80101 Joensuu, Finland E-mail: antti.mutanen@metla.fi
Viitanen, Finnish Forest Research Institute, Joensuu Unit, P.O. Box 68, FI-80101 Joensuu, Finland E-mail: jv@nn.fi

article id 400, category Research article

Antti Mutanen, Anne Toppinen. (2005). Finnish sawlog market under forest taxation reform. Silva Fennica vol. 39 no. 1 article id 400. https://doi.org/10.14214/sf.400

Keywords: forest taxation; reforms; roundwood supply; simultaneous equations

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The stepwise transition in forest taxation from site productivity tax to taxation of profits from timber sales was one of the major institutional changes to impact Finnish non-industrial private forest owners in the 1990s. In this study the effect of the forest taxation reform on the aggregate supply of sawlogs was investigated using time series analysis and quarterly data. In particular, we estimated two simultaneous equations systems for the pine and the spruce sawlog markets. According to the results, the forest taxation reform strengthened the supply of spruce and pine sawlogs in the anticipatory stage of the taxation reform in 1992. Also during the fiscal transition period, which started in 1993, the supply effect of the taxation reform has clearly been positive. The strong own-price elasticity of sawlog supply found in this study indicates high sensitivity to actual and expected wood price changes in the determination of sawlog supply in Finland. Furthermore, the results indicate that the theoretical assumption of a competitive market is suitable for the Finnish sawlog market, but that separate analysis of pine and spruce sawlogs provides additional insights into market behaviour.

Mutanen, Finnish Forest Research Institute, Joensuu Research Centre, P.O. Box 68, FI-80101 Joensuu, Finland E-mail: antti.mutanen@metla.fi
Toppinen, Finnish Forest Research Institute, Joensuu Research Centre, P.O. Box 68, FI-80101 Joensuu, Finland E-mail: at@nn.fi

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