Browsing by Subject "Environmental and Natural Resource Economics"

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  • Tamminen, Tiina (Helsingin yliopisto, 2021)
    One-fifth of Finland’s total greenhouse gas emissions and two-fifths of the Effort Sharing sector’s emissions come from domestic transportation. Of the domestic transportation emissions, 94% comes from road traffic. The target for Finland is to reduce 39% of the greenhouse gas emissions from the Effort Sharing sector by 2030, and Finland is committed to halving its emissions from traffic by the year 2030 compared to the 2005 level. The electrification of the vehicle fleet is one of the instruments set to achieve the emission reduction targets of the transportation sector. An ambitious goal of 700 000 electric vehicles, of which a significant part is battery electric vehicles, is suggested for 2030. The study explores the most significant attributes and the factors that affect the likelihood of adopting electric vehicles in Finland. The choice experiment data was collected by a survey questionnaire. The data comprises 409 respondents and represents the Finnish driving license holders well regarding age, gender, and living county. The data was analysed with econometric models using Nlogit and SPSS software. The results show that the most important attributes in vehicle purchase choice are purchase price, driving range, and charging time. Driving costs and CO2 emissions from driving were not statistically significant in this study. Plug-in hybrids were chosen more frequently than battery electric vehicles. The study finds many socio-demographic characteristics, and vehicle and driving-related factors that affect vehicle purchase choice. These simultaneously statistically significant characteristics for the vehicle purchase choice for battery electric vehicle are living county Uusimaa, university degree, gender woman, age less than 50 years, and driving less than 50 km per day. The variables found to increase the probability to choose a plug-in hybrid vehicle are residence in Northern or Eastern Finland, university degree, gender woman, row or semi-detached house, and the possibility to charge an electric vehicle at home. The study identifies the respondents who never chose an electric vehicle in the choice tasks and reveals a wide set of attitudes towards electric vehicles. The study reveals respondents' overall lack of information on electric vehicle and traffic emissions, and instruments for emission reductions.
  • Jenkins, Jamie (Helsingin yliopisto, 2020)
    The Arctic environment is unique and hosts many economic opportunities. The environment is fragile and is home to many different animals, plants and indigenous people. The area has undergone periods of remilitarisation since the end of the cold war, and this is impacting local communities economically, environmentally and their social development. This research has been undertaken to assess the impact that military activity is having on these local communities. A literature review was undertaken in 3 key areas: Arctic sustainability, military sustainability and Arctic militarisation to identify relevant indicators that impact sustainable development. Sustainable development was defined using the 3 pillars from the Brundtland report, as economic, environmental and social. These indicators were collated to create a conceptual framework that was used to analyse two case study cities in the Arctic. These two cities were Fairbanks, in Alaska, and Severomorsk in Russia. These were chosen as economically and socially, they are very different, but they share the main similarity of being militarised Arctic cities. This meant the framework was tested on two different cities and in two different environments to test the validity and usefulness. The two case studies were built from reports, census information, statistical information and government reports. Although quantification was outside the scope of this research, observations were found from the data. Economically, the impact is positive. Military activity generates jobs, growth, infrastructure and military spending. The environmental impact is clearly negative. Military activity contaminates groundwater, soil, water and the local environment. The social impact is more ambiguous. Military activity helps foster community development but can impact personnel health. A discussion was undertaken on the effectiveness of the framework and improvement areas. The framework provided a good overall picture of activity but could be improved in some areas. These areas include reducing subjectivity in the construction phase, improved environmental data and time series data. The research was limited by time constraints and data availability in some impact areas.
  • Raschen, Annika (Helsingin yliopisto, 2021)
    This thesis studies the economic benefits that the installation of nature-based solutions can have as a flood risk management tool. The effects of a changing climate often accumulate in urbanised areas and can translate into an increased likelihood and heightened damage potential of precipitation-induced flood events. One way to reduce the devastating flood impact is the use of nature-based solutions, which are management tools relying on natural processes and ecosystem services (EC, 2018). Green roofs are one example of nature-based solutions. To date, little research is available in the academic literature on the economic profitability and cost-efficiency of such alternative approaches (Palmer et al., 2015). The thesis aims to contribute to the scare literature on the topic by conducting a flood damage assessment for a case study site. It is devel-oped from a research contribution to the EU OPERANDUM project, which evaluates nature-based solutions as tool to alleviate hydro-meteorological risks as well as their cost-efficiency on a broader scale (OPERANDUM Project, 2018). The thesis conducts a flood dam-age assessment for green roofs hypothetically installed in Dublin, Ireland. It estimates the expected damage costs from flood scenarios with a recurrence period of 10, 100 and 1000 years. To this end it relies methodologically on a flood damage assessment, specifically the Joint Research Centre model developed by Huizinga, de Moel & Szewczyk (2017), as well as on value transfer. The assessment is re-stricted to the calculation of direct, tangible flood damages. To provide more robust results, the assessment also draws on the analytical insights from the cost-benefit analysis literature and incorporates aspects such as discounting and a partial sensitivity analysis. In terms of software, the majority of the research is carried out in QGIS and Excel. Comparing the flood impacts with and without the installation of nature-based solutions, it assesses the size of the avoided damage costs and finds a noticeable positive impact of green roofs. The green roofs cannot only reduce the size of the flooded areas by up to 19% as well as decrease the water depth in the still inundated parts, but also noteworthily curtails the height of the direct, tangible flood damage costs. The thesis cannot extract definite conclusions on the profitability of green roofs in the sense of providing a net present value, because it does not study costs nor other benefits of green roofs for reasons of scope. It does, however, show that the installation of green roofs can lower the flood damage costs in Dublin by up to 36%. As additional conclusion, this thesis calls for research into more nuanced flood damage assessment methods, since the selected model excluded many factors. A methodological refining could increase the precision of monetary damage estimates. Altogether, the thesis observes that green roofs can be a useful tool to reduce the devastating impact of urban floods. However, green roofs should be combined with other flood management tools, since they can be insufficient if applied on their own.
  • Husa, Miikka Helmer (Helsingin yliopisto, 2021)
    Climate change and the biodiversity loss have created a need to change forest management in commercial forests. Carbon sequestration, climate change adaptation, and biodiversity conservation can be promoted in commercial forests through various measures, and this thesis examines what factors affect non-industrial private forest (NIPF) owners’ willingness to adopt such forest management practices. Additionally, the aim was to examine whether these factors vary among different measures. A systematic literature review was conducted to summarize previous research on the subject and to serve as reference for an empirical analysis. In the empirical part of the study, survey data of 405 Finnish NIPF owners was utilized to establish binary logistic regression models for forest owners’ willingness to adopt 13 distinct forest management practices. In the empirical analysis statistically significant factors varied among assessed forest management practices, although some patterns were recognized. The most striking consistencies were found concerning older forest owners reluctance towards deadwood in general, and positive effect of environmental motivation in willingness to adopt variety of measures, as long as they do not conflict with biodiversity. Overall, the results imply that the diversity of NIPF owners concerns also their stances on various forest management practices, and they are not indifferent in terms of what forest management practices they are willing to adopt. Thus, when designing and implementing policies and advisory services aiming to promote carbon sequestration, climate change adaptation, or biodiversity protection in commercial forests, policy makers should take into account forest owners’ heterogenous preferences regarding different forest management practices.
  • Österberg, Nico (Helsingin yliopisto, 2020)
    We study the compensation required to increase carbon sequestration in privately owned forests as a part of effective climate policy. We develop a theoretically correct understanding of compensating additional carbon sequestration in a voluntary stand-level carbon offset scheme by creating incentives for extending the rotation from the privately optimal length. We examine the cost of extending the length of the rotation to a socially desired level. The resulting costs and the increase in carbon sequestration determine the level of compensation required to make the private forest owner indifferent between joining the compensation scheme and resuming privately optimal forest management. A correctly defined subsidy scheme is required as forests are expected to play a major role in meeting national climate change mitigation targets, and so far, the existing schemes have failed to attract voluntary participants. The well-established univariate optimal rotation model (Faustmann 1894, Samuelson 1976) with a net carbon subsidy (van Kooten et al. 1995) is used to evaluate the compensation structure in the California Forest Offset Protocol and the New Zealand Emissions Trading Scheme, and to present a theoretically sound framework for subsidizing additional carbon sequestration in forests. An empirically more realistic size-structured forestry model with carbon storage (Assmuth et al. 2018) is used to verify the understanding of a correctly defined subsidy scheme when thinnings and multiple carbon pools are included. The results of the theoretical modelling are compared to practical applications in California Cap-and-Trade and the New Zealand Emissions Trading Scheme. These practical applications have faced various problems and have been subject to numerous revisions, due to issues with baseline establishment, over-crediting, questionable additionality, and leakage. We show that if the compensation scheme follows the Californian structure, a significantly high compensation is required to create sufficient incentives for private forest owners to participate in the sequestration program. The exclusion of carbon stored in harvested wood products may have decreased voluntary participation of post-1989 forests in the New Zealand Emissions Trading Scheme. These schemes serve as an example for the rest of the world of constructing a carbon sequestration compensation scheme. Thus, it is paramount to evaluate the choices in policy design, by comparing the compensation structure to a theoretically sound way of incentivizing additional carbon sequestration.
  • Juvonen, Jaakko (Helsingin yliopisto, 2020)
    Ilmastonmuutoksen aiheuttamien riskien hallinta on nyt ja tulevaisuudessa tärkeää. Tämä tutkielma keskittyy antamaan tietoa päätöksenteon tueksi ilmastonmuutoksen aiheuttamien hydrometeorologisten riskien hallintaan, joita ilmastonmuutos aiheuttaa vedenlaadussa Puruvedellä. Tutkimuksen tarkoituksena on arvioida jatkuvapeitteisen metsän kasvatuksen (CCF) ja suojavyöhykkeiden soveltuvuutta luontopohjaisiksi ratkaisuiksi (NBS), joilla saadaan pidettyä järven vedenlaatu nykyisellään tai parantamaan sitä. Tutkimuskysymys on: ”Onko taloudellisesti järkevää käyttää jatkuvapeitteistä metsän kasvatusta ja suojavyöhykkeitä ravinnekuormituksen vähentämiseen tutkimusalueella, jotta vedenlaatu alueella säilyy vähintään nykyisellä tasolla” Aiempi tutkimus on osoittanut jatkuvapeitteisen metsänkasvatuksen olevan taloudellisesti varteenotettava vaihtoehto kasvattaa metsää. Lisäksi tutkimus on osoittanut, että CCF ja suojavyöhykkeillä voidaan vähentää vesistöihin kohdistuvaa ravinnekuormitusta metsämailta. Näistä NBS:istä aiheutuvia kustannuksia ja hyötyjä arvioidaan tutkielmassa kustannus-hyötyanalyysin keinoin, jossa tarkoituksena on laskea projektista johtuvat hyödyt ja kustannukset ja verrata näiden nettonykyarvoa. Mikäli projektista seuraava yhteiskunnan nettohyöty on positiivinen, tulisi projektia suositella. Tutkimusalueen virkistysarvo arvioitiin käyttämällä hyödyksi Luonnonvarakeskuksen aiempia arvottamistutkimuksia. Virkistysarvoja verrattiin NBS:stä aiheutuviin taloudellisiin menetyksiin metsänomistajille. Kustannukset saatiin hyödyntämällä kokoluokka-rakenteista metsän optimointimallia. Tavoitteena oli selvittää, mikä on metsästä saatava maksimoitu tuotto metsänomistajille ja verrata sitä optimointitulokseen, jossa päätehakkuu on rajoitettu. Tämän lisäksi suojavyöhykkeillä olevan metsän maksimoitu arvo laskettiin, josta saadaan suoraan metsänomistajille aiheutuva menetys, koska alueet poistuvat kokonaan metsätalouden piiristä. Jatkuvapeitteinen metsänkasvatus oli kummassakin tapauksessa taloudellisesti optimaalinen tapa kasvattaa metsää. Tämän lisäksi arvioitu yhteiskunnan nettohyöty projektista on positiivinen, joten NBS:iä voidaan tältä perusteelta suositella keinoiksi vedenlaadun säilyttämiseksi tutkimusalueella. Tutkimuksen tuloksiin on kuitenkin suhtauduttava varauksella, koska analyysiä tehtäessä tutkimusalueen ravinteiden huuhtoutumismallit ovat vielä tekeillä, joiden valmistuttua tarkempi tieto NBS:ien vaikutuksista on saatavilla.
  • Huisman-Dellago, David (Helsingin yliopisto, 2020)
    Dairy farms account for a large portion of the greenhouse gas emissions in the planet. Since cow manure provides a good medium for anaerobic digestion, this study analyzes the economic feasibility of installing a biogas plant adjacent to a 200-cow farm in Finland. The farms in this study produce only cow manure and grass silage to feed the digester. This paper focuses in comparing different scenarios such as electricity production for farm needs and the production of biofuels such as compressed biomethane as an additional business activity. After designing the farm economic model and the biogas installation, we provide an economic analysis of each scenario. The first one shows that it is not feasible to run the biogas business model based only on electricity savings for the farm. The second one proves that additional revenue streams such as biofuel production can revitalize and strengthen the financial model of the plant. Then, the sensitivity and reliability of the model is discussed by providing reasons (i.e. Finnish electricity tariff system) for the outcome of the results. The model reinforces the idea that farms must base their biogas business model on alternative side-streams and do not rely on energy production only. For further research, it is recommended that real life farm business models are incorporated as input data and a proven plant and CHP engine energy balance is secured.
  • Zaman, Sara (Helsingin yliopisto, 2020)
    Despite much scholarly attention given to values and preferences toward the environment, comparatively few studies have examined the spatial relationships between relational values and more established concepts including instrumental and intrinsic values, self-reported knowledge of natural resource management issues, and perceived landscape threats. This study examines these context-based relationships using public participation geographic information systems (PPGIS) survey techniques. An online PPGIS survey was administered during the summer of 2019 to 1,200 residents in Mjölby kommun in Sweden, a community heavily reliant upon silvo-pastoral landscape use. A total of 301 responses were obtained, resulting in a 25.1% response rate. Spatial association and statistical analyses tests were conducted to examine the relationships between different categories of values, self-reported knowledge of natural resource management issues, and values and preferences for landscape threat management. Results indicate that socio-demographics alone have little to no significant impact on how many value points of any category are associated with the environment; however, significant differences in the spatial distribution of values were found by gender and self-reported knowledge of forestry, agriculture, and native biodiversity. Male respondents tended to assign instrumental values in more diverse areas across the landscape. Respondents who rated themselves as knowledgeable about biodiversity tended to assign relational values inside Natura 2000 sites, while those who rated themselves as knowledgeable about forestry avoided placing instrumental values in Natura 2000 sites. Contrary to expectations, instrumental values were the most evenly dispersed across the landscape, while intrinsic values were more concentrated in specific areas, and relational values were the most concentrated around the towns of Mjölby, Skänninge, and Mantorp. High degrees of spatial overlap were found between intrinsic and relational values, implying these value types may be conceptually similar for residents. Future PPGIS research could focus on smaller regions such as those at the municipal or regional level to more precisely identify the context-specific relationships between instrumental, relational and intrinsic values and natural resource management preferences in the local landscape.
  • Vehola, Anni (Helsingin yliopisto, 2021)
    Forests play a key role in climate change mitigation. There are different ways in which forests can contribute to both increasing carbon sequestration and reducing emissions. In Finland, forests are largely owned by private forest owners and thus the actions of these forest owners have a great impact on the climate change mitigation potential of forests. Thereby, this study examined the perceptions of Finnish forest owners on the following climate change mitigation strategies in the forest sector: Forest management, More harvest, Less harvest, Wood products, Conservation, Adaptation, and Land use change. Especially, the study focused on “Less intervention” (a combination of three individual strategies), and “Forest management” as strategies and tested how the following hypothesized aspects are associated with the support for these strategies: the prioritized values affecting the choice between climate change mitigation strategies in the forest sector, risk perception of climate change, political orientation, education level, and the size of forest land. The tested hypotheses were derived from the existing literature on theories and empirical findings on the perceptions of citizens and forest owners. The effect of the independent variables on the chosen climate change mitigation strategies was studied through linear regression analysis based on a quantitative survey with 892 responses. Regression models were established separately for both chosen strategies. On average, forest owners supported all climate change mitigation strategies in the forest sector, except Less harvest. Further the results of the linear regression analysis supported all hypotheses to some degree. Perceived risk of climate change emerged as an important measure affecting the support for climate change mitigation strategies in general. Left-right political orientation was found important, where individuals positioned more on the right side of the political spectrum generally supported strategies that have more human intervention in forests. Forest owners’ prioritized values were discovered to significantly affect the support for climate change mitigation strategies in the forest sector, and forest owners who valued biodiversity gave more support towards Less intervention and less support towards Forest management. Forest owners with a smaller property tended to be slightly more supportive towards Less intervention, but in the Forest management model, the effect was not significant. Similarly, the simultaneous effect of education and political orientation was significant in the Less intervention model, indicating that forest owners with a university degree and right-winged political orientation tended to be more supportive towards strategies with more human intervention in forests, compared to forest owners with a university degree and left-winged political orientation. Apart from hypothesized variables, gender was found a significant predictor of support towards strategies, where, on average, women were more likely to support Less intervention, and similarly be more opposing towards Forest management, compared to men. In light of the results, Finnish forest owners tend to be rather conscious about climate change and support on average different climate change mitigation strategies in the forest sector. Nevertheless, private forest owners are a heterogeneous group of people whose preferences vary greatly, and thus policies need to be implemented accordingly.
  • Korhonen, Samuli Joonatan (Helsingin yliopisto, 2020)
    We analyse the forest reference level (FRL) projection in Finland. FRLs are included in the European Unions’ new land use, land-use change and forestry (LULUCF) regulation (EU 2018/841) that is part of the actions towards the Paris Agreement’s climate mitigation targets. The regulation defines the accounting rules for carbon dioxide (CO2) emissions within the sector. We build on the LULUCF regulation, the provided guidance documents on the FRL projection, national forestry accounting plans and the existing studies concerning the FRL projections. Business-as-usual reference levels were used for the Kyoto Protocol’s second commitment period. The parties of the Kyoto Protocol had an incentive to report high harvest levels (Frieden et al. 2012). Thus, the reference levels overestimated the harvests by including in assumptions about future policies. Some of the assumptions did not materialize and this led to windfall carbon credits (Grassi et al. 2018, Krug 2018). Such overestimation has happened, for example, in Finland. In this thesis we analyse, whether the new forest reference levels are able to avoid problems that occurred during the Kyoto Protocol. The LULUCF regulation is set for the compliance period (CP) of 2021-2030. The forest reference level is a baseline projection for the forest carbon sink, defined by the historical forest management practices of the reference period (2000-2009). Age-related dynamics of the forest can be taken into account but any anticipated policy changes need to be excluded from the projection. The FRL indirectly defines the level of harvests that are not considered as emissions. The excess carbon sink can be traded to other Member States or be used to compensate the effort sharing sector’s emissions. One of the suggested principles to project historical forest management is to utilize the intensity of management (Grassi and Pilli 2017, Grassi et al. 2018), which is calculated by dividing the reference period’s harvest by the amount of biomass that was available for the wood supply during the same period. The future harvest level is computed by keeping the intensity of management constant. This principle is used in Finland and in several other EU member states. To analyse the suggested principle, we utilize a partial equilibrium model for forestry and agriculture (Mitra and Wan 1985, 1986, Salo and Tahvonen 2004). Using this model, we are able to compute a FRL in a case where policy shock has increased harvest levels after the reference period. This resembles the situation in Finland. Our numerical results show that the choices on the biomass available for wood supply, interest rate and the starting year of the projection can have significant impacts on the FRL computation. By these choices, a member state is able to overestimate the harvest possibilities. Thus, the EU fails to set a regulation that fully excludes national incentives in specifying the FRL. The setting of the Finnish FRL includes a tendency of minimizing the restrictions on the future harvest levels. This outcome follows by choosing high interest rate, early starting year for the projection and a loose definition for the biomass available for wood supply.
  • Arto, Tiina (Helsingin yliopisto, 2021)
    To combat climate change, emission reduction measures are needed in all sectors of the economy. Finland's effort sharing sector has a binding 39 percent emission reduction obligation for 2030. Achieving the obligation requires actions in every field of activity in the effort sharing sector. Emissions from decentralised heating systems in buildings are included in the effort sharing sector. In Finland these emissions originate mainly from oil heated buildings. Currently there are still around 130 000 oil heated detached houses in Finland whose carbon dioxide emissions could be reduced by utilising renewable energy. In this study oil heating is completely replaced with a ground source heat pump, a pellet heating system or an air-to-water heat pump. Partial replacement of oil heating was also studied, whereby an air-to-water heat pump is installed alongside the old oil heating or part of a fossil light fuel oil is replaced by bio-based fuel oil with the distribution obligation. The study was conducted from the perspective of environmental economics and the main purpose was to examine the cost-effectiveness of these emission reduction measures and the policy measures directed to the oil heated detached houses. The method used was a cost-effectiveness analysis based on a 15-year calculation period. Based on the results, the social costs of emission reduction measures varied from 35 EUR/tCO2 to 114 EUR/tCO2. From the societal point of view, the most cost-effective emission reduction measure proved to be an air-to-water heat pump alongside an existing oil heating system. Based on the results, the most expensive emission reduction measure for the society is the distribution obligation of bio-based fuel oil, which is why emissions from oil heating in detached houses should be reduced primarily by other measures. The tax and support levels used in the calculation were based on the 2020 levels. Based on the results, private emission reduction costs varied from -50 EUR/tCO2 to 169 EUR/tCO2, depending on the policy option and the discount rate. Based on the results, the tax level used in the calculations is insufficient for making the measures profitable for households which apply a higher discount rates than the society. The aid policy is therefore justified in order to promote the measures.
  • Suuronen, Juulia (Helsingin yliopisto, 2021)
    Forests play a central role in climate change mitigation actions, and substitution, that is the use of wood products in place of fossil intensive materials, has been recognized as a potential way to avoid emissions. While there are studies estimating the substitution impact of products, i.e., the avoided emissions, there is a lack of studies integrating market perspectives into substitution estimation. To contribute to this research gap, this study explores the market assumptions of substitution through the theoretical lenses of value chains and microeconomic theory on demand. The objectives are to recognize powerful decision-makers in the value chains, to establish a better understanding for the current state of substitution in the markets, and to explore the determinants of demand of the wood-based products. To limit the scope of this study, the use of pulp-based products was examined in the cases of packaging and textile sectors. Semi-structured interviews with 14 experts were arranged to discuss their views on substitution and demand of the pulp-based products in the chosen sectors. Additionally, a Likert scale was filled at the end of each interview to supplement the interview answers and enable elasticity and cross-price elasticity analyses to examine substitution. The sample of respondents was chosen through the use of snowball sampling and a matrix to recognize potential interviewees. First, the findings of this study suggest that in both sectors, the decision-making power on materials is held by the operators at the end of the value chain whereas the forest sector is located at the beginning of the chain. Second, in both sectors, there is willingness to find more sustainable material solutions, but the tools for this are lacking. In the case of packaging sector, the barrier capacities of plastic are unattainable with fiber-based materials, meaning that reducing plastic use does not always imply switching the feedstock itself. In the textile sector, the production of wood-based textile fibers is not yet scaled enough for it to compete with similar materials. However, the analysis of elasticities indicates that some substitution can be expected in both sectors. Third, a number of important determinants of demand were identified, yet no single factor could be identified as the most important one. This study concluded that there is room to improve the market assumptions for substitution impact estimation. In packages, the market preferences of fiber-based packaging in some uses give a rise for interpretational issues, while plastic reduction goals do not always imply switching to wood feedstock. In textiles, the new man-made cellulosic fibers (MMCFs) are expected to mostly substitute for viscose and fill the cellulosic gap from stagnating production of cotton instead of substituting for synthetic fibers. To conclude, it is central to integrate market data and concepts better into future substitution impact analyses to facilitate more realistic estimates.
  • Korhonen, Olli (Helsingin yliopisto, 2021)
    Metsien rooli ilmastonmuutoksen hillinnässä on noussut yhä tärkeämmäksi osaksi ilmastopolitiikan toteuttamista niiden sitoessa ja varastoidessa hiiltä ilmakehästä. Metsät ovat yksi Suomen tärkeimmistä luonnonvaroista, minkä johdosta niihin kytkeytyy useita tavoitteita taloudellisen arvon varmistamisesta monimuotoisuuden turvaamiseen ja hiilen sitomisen lisäämiseen. Suomen metsistä suurin osa on yksityisten metsänomistajien omaisuutta. Siten yksityisten metsänomistajien preferenssit ja tavoitteet omistukselle on olennaista huomioida, jotta metsät saadaan kytkettyä myös osaksi ilmasto- ja ympäristöpolitiikan tavoitteita. Tässä tutkielmassa tarkastellaan metsänomistajien suhtautumista hiilen sitomisen ja varastoinnin lisäämiseen osana omien metsien hoitoa. Aineistona hyödynnetään vuonna 2019 kerättyä kyselyä, joka tuotettiin Suomalainen metsänomistaja 2020 - tutkimushankkeessa. Kysely sisälsi perusotoksen sekä kolme erityisteemoihin keskittyvää osaotosta. Yksi osaotoksista (n = 2250) keskittyi metsien käytön ja käsittelyn hyväksyttävyyteen, jossa kysyttiin metsänomistajien suhtautumista lisätä hiilen sitomista osassa omia metsiä korvausta vastaan. Näistä kysymyksistä tarkastellaan logistisen regression avulla metsänomistajien kiinnostusta myydä hiilensidontapalvelua suhteessa omistajien ja tilojen taustapiirteisiin. Lisäksi yleisellä tasolla havainnoidaan metsänomistajien suhtautumista toteuttaa hiilen sitomista ja varastointia edistäviä metsänhoidollisia toimenpiteitä sekä niiden potentiaalista ilmastovaikutusta. Yksityisistä metsänomistajista puolet suhtautuu myönteisesti hiilensidontapalvelun tuottamiseen omassa metsässä korvausta vastaan. Merkitsevinä tekijöinä metsänomistajien ja tilojen taustapiirteitä tarkasteltaessa nousivat esiin ikä, koulutus sekä vastaajan näkemys omasta metsästä hiilinieluna. Tarkastelluista hiilen sitomista ja varastointia lisäävistä metsänhoidollisista toimenpiteistä yleisesti myönteisimmin suhtaudutaan jatkuvaan kasvatukseen, josta on kiinnostunut selvästi yli puolet vastanneista. Toimenpiteiden ilmastovaikutuksia arvioitaessa oli turvemailla toteutettavalla jatkuvalla kasvatuksella suurin päästövähennyspotentiaali ja se on useiden metsänomistajien näkökulmasta kiinnostava keino ottaa käyttöön omissa metsissä, jos siitä saisi korvauksen. Kokonaisvaltainen kestävä kehitys on jatkossa yhä olennaisempi osa metsien hoitoa, minkä vuoksi onkin tärkeää havainnoida, miten erilaiset tavoitteet ovat yhteensovitettavissa. On olennaista tunnistaa, millaiset metsänomistajat ovat potentiaalisesti kiinnostuneita tuottamaan hiilensidontaa ja millaisin metsänhoitomenetelmin voidaan saavuttaa kustannustehokkaasti mahdollisimman suuri ilmastovaikutus. Päätöksenteossa ja neuvonnassa tulee huomioida yksityisten metsänomistajien erilaiset tavoitteet omistukselleen, heidän halukkuuteensa ja valmiutensa toteuttaa eri toimenpiteitä sekä toimenpiteiden houkuttelevuus ja tarkoituksenmukaisuus eri kasvupaikoilla.
  • Niiranen, Mailis (Helsingin yliopisto, 2021)
    The microproduction of solar photovoltaics (PV) has grown enormously in recent years in Finland, and it is expected to grow even further due to the ambitious renewable energy targets and the on-going smart energy transition. Nevertheless, there is a lack of country-level statistical analysis on the topic. This thesis studies which sociodemographic, economic, and geographical factors explain the microproduction of solar electricity in Finland. The thesis consists of a literature review and statistical analysis on the electricity distribution system operator (DSO) level. The response variables are the number of prosumer contracts and the capacity of solar PV microproduction. The data, which were gathered from various open sources, is analyzed in a descriptive manner followed by multiple linear regression analysis. The analysis uses the ordinary least square method. In addition, profitability calculations are made to study economic incentives and barriers to the adoption of a PV system. The results suggest that the microproduction of solar PV is connected to non-urban areas and higher mean age. Instead, there are not that many separate prosumers in urban areas, but single systems’ capacities are more extensive there. The analysis showed that electricity price has a significant impact on the microproduction of solar PV. The profitability calculations support this result: electricity price substantially affects the viability of solar PV system investment. Thus, the introduction of financial incentives could enhance the adoption of solar PV systems among households. This thesis offers a comprehensive overview of small-scale solar electricity production in Finland. However, the characteristics of the microproduction of solar PV are complex and involve various interactions that are difficult to capture in aggregated data. This offers an opportunity to repeat the analysis with a more detailed geospatial dataset in the future.
  • Tikka, Tia Sara Karoliina (Helsingin yliopisto, 2021)
    Arktinen alue on suuri ja se koostuu ominaisuuksiltaan erilaisesta merestä, sekä sitä ympäröivästä maasta. Arktinen alue toimii kotina monille, ja se tuottaa elintärkeitä ekosysteemipalveluita niin paikallisille, kuin muillekin kansoille. Merenkulku on tärkeä osa Arktisen alueen toimintaa ja tänä päivänä suurin osa merenkulusta kohdistuu joko Arktiselle alueelle tai sieltä poispäin ja kauttakulkuliikennettä on toistaiseksi vain vähän. Tulevaisuudessa voimme kuitenkin odottaa merenkäynnin volyymin kasvavan, tuoden mukanaan erilaisia laivoja, eri määränpäillä ja eri tarkoitusperillä. Volyymin kasvu riippuu merenkulun osalta monesta seikasta, mutta näitä vahvistaa kuitenkin tavanomaisten reittien ruuhkautuminen, sekä ilmastonmuutoksen mukanaan tuomat vaikutukset, kuten jääpeitteen pieneneminen. Tutkielma suoritettiin laadullisena tutkimuksena, jossa perustan loi kattava kirjallisuuskatsaus. Pääasiallisena tiedonkeruutapana olivat kuitenkin haastattelut, joiden pohjana kirjallisuuskatsaus toimi. Haastatteluissa haastateltiin eri merenkulun asiantuntijoita, jotka toivat omaa osaamistaan esille erillisten teemojen kautta. Haastattelujen tuloksen analysoitiin laadullisen tutkimuksen menetelmin, käyttämällä siihen tarkoitettua ohjelmistoa. Niin haastatteluista, kuin kirjallisuuskatsauksestakin nousi esille paljon samoja ongelmia ja havaintoja. Työ keskittyi erityisesti vakuutuksiin ja siihen, kuinka vakuutuksilla voidaan ohjata ja hallita riskejä Arktisessa merenkäynnissä. Tutkielman pääasiallisena tuloksena nousi esille, että siinä missä vakuutussektori toimii hyvin riskin välittäjänä, niitä ei kuitenkaan käytetä tehokkaasti riskien hillintään. Vakuutussektorin nähtiin toimivan kuitenkin yleisellä tasolla hyvin ja tarkoituksenmukaisesti. Suurin ongelmatiikka tuli esille tietoon liittyen. Tietoa koettiin olevan liian vähän ja sitä on vaikea saada. Myös regulaatioiden merkitys korostui haastatteluissa ja sitä toivottiin lisättäväksi Arktiseen merenkulkuun liittyvissä asioissa.
  • Laukkanen, Matti (Helsingin yliopisto, 2020)
    This study analyses the effects of carbon subsidy schemes on the optimal forest management in forest sites of different productivity. Forest stand level analysis shows the changes in the optimal stand management due to carbon subsidies. Market level analysis evaluates the market level implications of mutual and unilateral carbon subsidy policies and their effects outside the policy area. In the first chapter, we study the effects of carbon subsidies on a forest stand level. The results show that carbon subsidies lengthen the optimal rotation period, increase the annual timber output and increase the amount of CO2 sequestered in the forest stand. A sufficiently high carbon price leads to forest conservation. All the effects are stronger in the forest of poor productivity. The market level analysis presents an age-class structured model with an endogenous timber price and alternative land use. The numerical examples show that, in addition to the effects shown in the stand-level analysis, carbon subsidies encourage afforestation. An increase in the annual timber output may lead to a lower stumpage price. Unilateral policies may lead to an increase in timber output inside the policy, which decreases the timber price and result in deforestation outside the policy. As a sufficiently high carbon price leads to forest conservation, timber price increases and results in afforestation and decrease carbon emissions outside the policy. The results are in contradiction with the common hypothesis that increasing carbon sequestration in forests by unilateral policy would inevitably lead to an increase in carbon emissions outside the policy area.
  • Sarvola, Inka-Mari (Helsingin yliopisto, 2022)
    Reindeer (Rangifer tarandus L.) is an integral part of ecosystems across the northern boreal regions, and reindeer husbandry is an important socio-cultural factor, especially for indigenous people. Currently, reindeer husbandry in Fennoscandia is confronted with deterioration of pasture areas, and the decreasing of reindeer number has often been offered as a solution. However, in most reindeer herding districts, forestry has also strongly decreased the sustainable production capacity of winter pastures and therefore has had a significant role in pasture deterioration in addition to high reindeer numbers. The interaction between forestry and reindeer husbandry has often been studied qualitatively, ecologically, or with simple bio-economic models from the perspective of forestry. In this thesis, I use a detailed interdisciplinary ecological-economical model to study how the rotation forestry affects the economics of reindeer husbandry. The research questions are 1) how does the length of forest rotation period and 2) the management practices such as soil scarification and leaving of harvesting residues affect the economically optimal reindeer husbandry. I expand a novel ecological-economical reindeer husbandry optimization model to include the effects of forestry on the ground and arboreal lichen with an assumption of normal forest structure. The effects of forestry on the ground and arboreal lichen are based on previous literature. Modern dynamic optimization algorithms are used to solve the model for the optimal number of reindeer, annual net revenues, lichen biomass on pastures, and the level of supplementary feeding under different forest rotation lengths and management scenarios with zero and positive interest rates. The results show that the length of forest rotation period affects the economically optimal solution. When pasture rotation is used, shortening the forest rotation length decreases the optimal number of reindeer, annual income, and the lichen biomass in pastures, but increases the amount of supplementary feed given. When pasture rotation is not used, shortening the forest rotation length decreases the number of reindeer, annual net revenues, and supplementary feeding, but increases the lichen biomass. Soil scarification and harvesting residues lower the annual net revenues of reindeer husbandry by 1-15% depending on the forest rotation length and pasture rotation. The longer is the forest rotation length, the less the annual net revenues are affected by the forest management practices. Higher interest levels lead to higher reindeer numbers and a higher level of supplementary feeding, but also to lower lichen biomass and annual net revenues from reindeer husbandry. The results of this thesis support the earlier findings of negative effects of rotation forestry and short rotation lengths on reindeer husbandry, and estimations that reindeer husbandry is more resilient if pasture rotation is used. As the economical sensibility of rotation forestry in Lapland has currently been questioned, even-aged forestry could offer a solution with the best management scenarios for both parties. The results of this thesis support infinitely long forest rotation length without soil scarification. This thesis also highlights the need for interdisciplinary co-design of ecological studies to ensure that they are suitable for creating complex interdisciplinary optimization models.
  • Rautiainen, Aapo (Helsingin yliopisto, 2019)
    Human land use affects the climate through various channels. This thesis focuses on the optimal (i.e. welfare-maximizing) regulation of land use sector climate impacts using market-based instruments, such as taxes and subsidies. The thesis consists of four articles and a summary chapter. Each article focuses on a separate aspect of land use sector climate policy. The first article outlines a comprehensive tax policy for jointly regulating carbon storage in biomass, soils and products. Considerations regarding soil carbon storage are emphasized. The second article concerns the regulation of CO2 emissions from the energy use of logging residues. The harmfulness of these emissions is compared with that of fossil emissions. A way to harmonize the carbon taxation of the both energy sources is presented. The third article regards the application of the additionality principle to forest carbon subsidies. In the stand-level context it appears that the additionality principle can be implemented without distorting the optimal rotation, by reclaiming subsidies for baseline carbon storage by a site productivity tax on forests. However, at the market-level such a tax distorts the optimal rotation and the optimal land allocation. These distortions can be avoided, if the excess subsidies are eliminated by general land taxation (which also targets other land use). The fourth article presents a new concept: the Social Cost of Forcing (SCF), which is the social cost of the marginal unit of radiative forcing at a given moment. It is a fundamental price that can be used to value different forcing agents. Forcing agents’ prices that are based on the SCF are consistent with the Social Cost of Carbon, and can therefore be consistently applied in cost-benefit analysis or utilized to harmonize the regulation of non-CO2 forcing agents. Together the four articles contribute to our understanding of land use sector climate policy design.
  • Närhi, Lotta (Helsingin yliopisto, 2022)
    Boreal forests fulfil a myriad of ecological, social and economic functions in modern society, which is why it is crucial to manage them in the best way possible. The prevailing forest management strategy in Finland has been rotation forestry, but a Finnish citizens’ initiative and the new EU forest strategy for 2030 have for ecological reasons been calling for a reduction in clearcuts and a switch to continuous cover forestry. While a growing number of economic-ecological optimization studies illustrate the economic aspects of optimal management regime choice in Nordic conditions, the understanding remains incomplete. To contribute to this line of research, this thesis studies the economically optimal management regime and species composition of mixed-species boreal forests with a previously unexamined species combination: Scots pine (Pinus sylvestris L.) and silver birch (Betula pendula Roth). The analysis is based on a theoretically sound and generalized stand-level economic-ecological model that maximizes the net present value of forestry income. In this setup, the optimal management regime is determined endogenously and flexibly, by dynamically optimizing both the rotation period and the timing and intensity of thinnings in a tri-level structure. All model details are empirically estimated. Forest stand development is described by size-structured empirical growth models by Pukkala et al. (2011, 2013) and by Pukkala et al. (2021), of which the latter has not been used in this line of analysis before. The results of this thesis show, for the first time empirically, that it can be economically optimal to conduct near-clearcuts without investing in artificial regeneration afterwards. Near-clearcuts create favourable conditions for utilizing the unharvested young trees and natural regeneration of pioneer species in generating a new tree cohort. This management strategy is found to be suitable for birch-dominated pine–birch stands with a 1% interest rate, as well as pure birch stands. With a 3% interest rate, continuous cover forestry becomes optimal for mixed stands. A further outcome of this thesis is that continuous cover management of pure pine stands is found to be more viable than in previous optimization studies. Further, it is shown that it is economically beneficial to let birch regenerate in a pine stand and even dominate it, due to improvements in overall ingrowth. The characteristics of the optimal solutions are, however, dependent on the ecological growth model used. In light of the cases studied in this thesis, neither rotation forestry nor continuous cover forestry is categorically superior in terms of timber income. There are demonstrably many cases where taking advantage of the environmental benefits of continuous cover forestry and higher tree species diversity is optimal also with respect solely to maximizing timber revenues.
  • Ilvonen, Suvi (Helsingin yliopisto, 2021)
    The importance of multipurpose forests is increasing since forests can simultaneously provide solutions for climate change mitigation, biodiversity protection, and the diverse needs of humans. Therefore, forest management practices, various management objectives, and forest-related policies become necessary parts of sustainable forestry. A notable share of forest management decisions depends on the preferences and motives of private forest owners, and an increasing number of owners are interested in other than timber values in their properties. In addition, changes in forest ownership structures and varied use of forest management alternatives emphasize understanding private forest owners’ management motives. This thesis aims to examine Finnish private forest owners and their forest management preferences regarding the support of biodiversity values and interest in wood-material production for the needs of the bioeconomy. The survey data were collected in spring 2020 and included a choice experiment with three forest management schemes. Two hypothetical management contracts, timber-oriented, and nature-oriented strategies, were used as alternatives for the conventional management practices. The long-term effects from each management scheme were described with the changes in profit, biodiversity, carbon stock, climate change-induced damages, and one-time subsidy. The survey data were analyzed using conditional logit, random parameters logit, and latent class logit models. Forest owners consider biodiversity values and raw material supply for the bioeconomy important. However, the results suggest that, on average, forest owners may not be willing to accept the timber-oriented management contract, whereas the nature-oriented management strategy is generally a more preferred option. The latent class model reveals three forest owner types with different preferences and management objectives. The largest share of the respondents is identified as Traditionalists who prefer conventional management practices to other alternatives. They might be reluctant to change their strategies despite the level of subsidies. The smallest group, Environmentalists, is oriented towards environmental and natural values in their forests and would most likely use continuous cover forestry and safeguard biodiversity values. The monetary support does not necessarily impact their management decisions. The rest of the respondents are described as Profit-oriented owners who may be a potential target for various forest management contracts. They consider their property more often as financial security and could be motivated by compensation. The possibility for productive and viable forests has a considerable impact on forest owners’ management decisions. However, the results indicate broad interest in various management alternatives, and the segment-based analyses reveal different forest management objectives among the owners. Therefore, understanding the diversity between forest owners helps policymakers to target specific policy goals more effectively.