Regional socio-economic impacts of intensive forest management, a CGE approach

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http://hdl.handle.net/10138/298640

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Karttunen , K , Ahtikoski , A , Kujala , S , Törmä , H , Kinnunen , J , Salminen , H , Huuskonen , S , Kojola , S , Lehtonen , M , Hynynen , J & Ranta , T 2018 , ' Regional socio-economic impacts of intensive forest management, a CGE approach ' , Biomass & Bioenergy , vol. 118 , pp. 8-15 . https://doi.org/10.1016/j.biombioe.2018.07.024

Title: Regional socio-economic impacts of intensive forest management, a CGE approach
Author: Karttunen, Kalle; Ahtikoski, Anssi; Kujala, Susanna; Törmä, Hannu; Kinnunen, Jouko; Salminen, Hannu; Huuskonen, Saija; Kojola, Soili; Lehtonen, Mika; Hynynen, Jari; Ranta, Tapio
Contributor: University of Helsinki, Ruralia Institute, Seinäjoki
University of Helsinki, Ruralia Institute, Seinäjoki
Date: 2018-11
Language: eng
Number of pages: 8
Belongs to series: Biomass & Bioenergy
ISSN: 0961-9534
URI: http://hdl.handle.net/10138/298640
Abstract: The demand for and supply of forest biomass have both been increasing in recent years, which will set new requirements for forest management. Thus, new studies on regionally suitable forest management regimes to fulfill the needs of potential new investments and the impacts on wood supply potential on regional socioeconomic welfare are called for. The aim of this study was to examine the impacts of intensive forest management due to increased demand for wood biomass, from the regional economy point of view. In particular, the impact of intensive forest management on 1) regional gross domestic product (GDP), 2) private consumption, and 3) employment were assessed. The study was carried out by using computable general equilibrium (CGE) modelling combined with the requisite statistics and simulation of regional forest potential in the future. The results showed that total regional forest biomass supply with more intensive forest management could be increased annually on average by 26% (1.7Mm(3)) by 2030 compared to the business as usual (BAU) scenario. In this study, regional demand was increased by a hypothetical saw mill (0.5Mm(3)) and biorefinery (0.7Mm(3)). Total regional socio-economic benefits could be 2.8% ((sic)150 M) for GDP, 1.5% ((sic) 49 M) for private consumption and 1.6% (780 person-years) for employment, larger by 2030 than in the BAU scenario including multiplier effects. The study demonstrated how much regional socio-economic welfare would increase if regional wood demand with new investments combined with more intensive forest management and wood supply had more attention paid to it.
Subject: CGE modelling
Demand
Wood
Simulation
GDP
Employment
CLIMATE-CHANGE
ENERGY WOOD
SCOTS PINE
LAND-USE
FINLAND
GIS
BIOMASS
POLICY
MODEL
METHODOLOGY
4112 Forestry
1172 Environmental sciences
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