Anne Toppinen. (1997). Testing for Granger-causality in the Finnish roundwood market. Silva Fennica vol. 31 no. 2 article id 5620. https://doi.org/10.14214/sf.a8521

Keywords: roundwood market; forecasting; timber market; stumpage prices; statistical analysis; Granger-causality; time series analysis

Abstract | View details | Full text in PDF | Author Info

The existence and direction of causal relationships between the time series for the Finnish roundwood market for the period 1960–1994 is tested. Using simple bivariate analysis, we found evidence that for both logs and pulpwood, the lagged prices are helpful in forecasting quantity for the next year, but not vice versa. Saw log stumpage prices have significantly Granger-caused pulpwood prices over the business cycles, but the effect has diminished towards the present time. For quantities traded, the direction of causality was rather from pulpwood to saw logs. The consistency of bivariate test results was checked by the Granger-causality tests within trivariate VAR-models for both markets, and the results were found to be fairly similar to bivariate tests. The price fluctuations in the international markets for forest products have been found to be carried to domestic wood markets dominantly via the pulpwood part of the market.

Toppinen, E-mail: at@mm.unknown

article id 4986, category Article

John E. Høsteland. (1978). Raakapuun hintasopimukset Norjassa. Silva Fennica vol. 12 no. 1 article id 4986. https://doi.org/10.14214/sf.a14840

English title: Collective timber price agreements in Norway.

Original keywords: metsätalous; raakapuu; puumarkkinat; puun hinta; hintasopimukset; Norja

English keywords: roundwood market; Norway; timber market; timber prices; timber price agreement

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In this paper the system of collective timber price agreement in Norway is described. The history of »collective behaviour» in the roundwood market can be tracked far back in history, with different degrees of importance, and it has totally dominated the price-formation of roundwood from the 1950’s until the present. In trying to answer the question »What has been the effect of the collective price agreements» a few theoretical market models are used and the empirical data are also employed. Both the theoretical discussion and the empirical data seem to indicate that the forest owners are better off with collective price agreements than with a situation where there are no organized price-negotiations.

The PDF includes a summary in English.

Høsteland, E-mail: jh@mm.unknown

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. https://doi.org/10.14214/sf.286

Keywords: forest biodiversity conservation; roundwood market; forest industry production

Abstract | View details | Full text in PDF | Author Info

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 E-mail: riitta.hanninen@metla.fi
Kallio, Finnish Forest Research Institute, Unioninkatu 40 A, FI-00170 Helsinki, Finland E-mail: maarit.kallio@metla.fi

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. https://doi.org/10.14214/sf.598

Keywords: wood market; oligopsony; forest industry

Abstract | View details | Full text in PDF | Author Info

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 E-mail: maarit.kallio@hkkk.fi

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