scholarly journals Economic Impacts and Land Use Change from Increasing Demand for Forest Products in the European Bioeconomy: A General Equilibrium Based Sensitivity Analysis

Forests ◽  
2019 ◽  
Vol 10 (1) ◽  
pp. 52 ◽  
Author(s):  
Salwa Haddad ◽  
Wolfgang Britz ◽  
Jan Börner

The European forestry sector is a potential driver of transformation towards a sustainable bioeconomy. Forest products are increasingly used in high-tech and high-value-added industries, e.g., chemicals and the automotive industry. So far, however, research on the European bioeconomy has largely focused on agriculture as a provider of food, feed, fuel, and fiber to bio-based industries. Here we assess the potential impacts of a stronger reliance on forestry sector inputs to the European Union (EU28) bioeconomy on output, prices, final demand, and land use. Specifically, we run a sensitivity analysis of a 1% increase of input use of forest products in the EU28 economy in a Computable General Equilibrium (CGE) framework accounting for land use by Agro-Ecological Zones (AEZ) and greenhouse gas (GHG) emissions at high regional and sectoral resolution. We find that such a shift to a more forest-based bioeconomy would provoke small indirect land use effects globally due to existing international trade linkages and land market effects. Simulated increases in planted forest cover are associated with net GHG emission savings, but our scenario analysis also points to higher imports of forest products from countries with vulnerable tropical forest biomes, such as Brazil and Indonesia.

2021 ◽  
Vol 24 (2) ◽  
pp. 103-118
Author(s):  
Benedek Nagy

To meet the requirements of global competition, the European Union (EU) places particular emphasis on the development of knowledge‑intensive, innovative industries. The pharmaceutical industry, as a high‑tech manufacturing subsection, has a long tradition in Europe. However, the distribution of pharmaceutical industry employment and value added is not even within the Union, and its temporal dynamics is also different. In the present paper, I examine the change of the structure of the pharmaceutical industry within the Union using country groups. I compare the development of pharmaceutical industry employment in the period between 2000 and 2018 in three country groups. I use a simple decomposition method to separate the effects of sector growth and labor productivity change on the change of pharmaceutical employment to find out how similarly this industry evolved in the different country groups. The analysis shows that while in the 12 original, i.e., pre–2004, member states (Core EU), employment slightly increased alongside a considerable increase in value added, the nine post‑socialist countries (PS9) achieved slightly greater value added expansion combined with substantial employment growth. Meanwhile, the four Visegrád countries (V4) achieved a value added growth similar to the PS9, but an even greater employment growth. This indicates that the part of the pharmaceutical industry operating with higher labor productivity is concentrating in the Core EU countries, while in the less developed post‑socialist countries, the part of the pharmaceutical industry with lower labor productivity is developing.


Author(s):  
M. A. Shishelov ◽  

The purpose of the work is to analyze the potential of a strategic alternative for development of the forestry sector of the Komi Republic. The main tasks are identifying barriers and directions for development of the regional forestry industry. The study shows that in the forestry sector of the Komi Republic, projects are being implemented that are included in the federal list of priority investment projects in the field of forestry development in Russia. But despite the modernization of existing enterprises and creation of new ones, the commodity structure of the sector remains conservative with a predominance of wood and paper products of low and medium processing levels. The technological level of production development remains insufficient, the share of innovative products with high value added is significantly inferior to countries with developed forest industries. At the same time, alternatives to development prospects of production are poorly studied issues of the forestry sector of the Komi Republic. This provision required a study of global trends in the development of the forest industry and determination of barriers preventing functioning of the forestry sector of the Komi Republic. As a result, the following is identified: technological backwardness of production; depletion of commercial timber stocks; poor development of the forest infrastructure; insufficient overall efficiency of the region's forestry sector. The main directions of overcoming the existing barriers include: increasing production volume of innovative products of the first generation at operating enterprises; organization of new productions of innovative forest products of the first and second generation in forest-supplied regions of the Komi Republic; development of a woodworking territorial cluster of small and medium-sized enterprises; introduction of innovative approaches to transporting timber from remote forest areas with poor transport accessibility and reforestation. Thus, the obtained data are of great practical importance for managing the development of the regional forestry sector.


2021 ◽  
Vol 25 ◽  
pp. 37-50
Author(s):  
A.M. Potapenko ◽  
◽  
N.V. Tolkacheva ◽  
V.V. But’kovets ◽  
A.V. Shatravko ◽  
...  

The data on the assessment of the dynamics of forested lands of the Republic of Belarus are presented. The characteristics of the forest fund for the period 1994–2019 are presented. Based on the materials of the provisions of international treaties, documents adopted within the framework of the implementation of the UN Framework Convention on Climate Change at the international and national levels, including the Paris Agreement, the provisions of regulatory legal acts of the Republic of Belarus, the results of scientific research, information from the Ministry of Forestry, according to the data of the State Forest Cadastre, an assessment of greenhouse gases in the forest fund of the Republic of Belarus was carried out. CO2 emissions and sinks from forestry have been calculated in accordance with the IPCC Guidelines for National Greenhouse Gas Inventories using the stock-difference method. It was found that as a result of purposeful work on reforestation and reforestation over a 26-year period, a positive dynamics of the forest fund was achieved in the Republic of Belarus: the forested area increased by 919,6 thousand ha from 7360,7 thousand ha to 8280,3 thousand ha; the forest cover of the territory of the republic increased by 4,3 % and reached 39,9 %; the total standing timber stock increased by 739,5 million m3 from 1092,3 to 1831,8 million m3 (including in mature and over-mature stands — by 300,3 million m3 and amounted to 348,8 million m3); the reserve per hectare of forested land increased by 72,8 m3 and amounted to 221,2 m3/ha; the stock of mature and over-mature stands increased by an average of 52,6 m3 and reached 273,9 m3/ha.


Forests ◽  
2019 ◽  
Vol 10 (2) ◽  
pp. 159 ◽  
Author(s):  
Thomas Ochuodho ◽  
Janaki Alavalapati ◽  
Pankaj Lal ◽  
Domena Agyeman ◽  
Bernabas Wolde ◽  
...  

The growing attention to renewable energy and rural development has created greater demand for production of biomass feedstock for bioenergy. However, forest growth rates and the amount of land in most existing forests may not be sufficient to sustainably supply the forest biomass required to support existing forest products industries and the expanding bioenergy industry. Additionally, concerns about agricultural land use competition have dampened expansion of biomass production on agricultural land base. One of the ways to meet the growing forest biomass feedstock demand for bioenergy production is by allocating currently marginal non-forested land for growing bioenergy feedstocks. In Virginia, about 80% of forestland is under nonindustrial private forest ownership. The land use allocation decisions of these private owners are critical for the supply of the forest biomass feedstock to support bioenergy production. We apply a computable general equilibrium model to assess the economy-wide impacts of forestland owners’ willingness to plant pine on non-forested land for woody bioenergy in Virginia. We consider three counterfactual scenarios of biomass feedstock supply increase as intermediate demand for bioenergy production based on forestland owners’ willingness to accept biomass bid prices to set aside more non-forested land for biomass production in Virginia under general equilibrium conditions. Overall, the results show an increase in social welfare and household utility but a marginal decline in GDP. However, increased demand of biomass from logging sector depressed the manufacturing sector (the wood manufacturing sub-sector particularly), which also relies on the logging sector for its intermediate inputs. Results from this study provide insights into the bioenergy land use competition debate, and pathways towards sustainable bioenergy feedstock supply.


2011 ◽  
Vol 162 (4) ◽  
pp. 107-116
Author(s):  
Jürgen Blaser ◽  
Christian Küchli

Around one third of the earth's surface is under forest cover which is distributed more or less equally between industrialised and developing countries. Whereas forest areas in the temperate and boreal climate zones are more or less stable or on the increase, the scale of deforestation and forest degradation in the tropics remains dramatic. This situation is likely to continue in the decades to come because the world's ever-growing population needs new agricultural land and the pressure on resources (forest products, land, water, minerals) continues to increase as a result of globalisation and global change. Moreover, sustainable forest management has not yet become standard practice in many southern countries because forest management can rarely compete with other forms of land use in terms of economic returns. The protection and sustainable management of forest resources is basically the responsibility of each individual country and cannot be regulated and financed globally. However, enormous financial resources, i.e. on a scale of tens of billions of Swiss francs per year, are required for the introduction of comprehensive land-use planning in developing countries incorporating suitable protection of natural forests and sustainable forest management. New approaches for the valorisation of services provided by forests such as carbon sinks (e.g. REDD+) offer significant potential for improving forest protection and sustainable forest management. It augurs well that the economic internalisation of the forest and its services is in full swing at global level and that, based on the REDD+ resolutions passed at the last climate conference in Cancún, many countries have opted for the path of forest conservation and sustainable forest management.


2020 ◽  
Author(s):  
Ilaria Fusacchia ◽  
Alessandro Antimiani ◽  
Luca Salvatici

AbstractSince production and trade are increasingly organized within global value chains (GVCs), assessing who effectively pays the cost of protection is not straightforward and since productive processes are internationally fragmented, quantifying the effects of trade policy requires an enhanced analytical framework that takes international input–output linkages into account to assess the implications trade costs have on competitiveness at national and sector levels. This paper defines a new synthetic measure of trade protection based on the value added in trade, capturing the effects that the tariff structure has on exporting firms that rely on imported intermediate inputs. The index, defined in a general equilibrium framework, provides a theoretically sound protection measurement in the context of GVCs. We assess trade protection by computing protection indexes at the bilateral level on both gross imports and imports to exports using the Global Trade Analysis Project computable general equilibrium model. These indexes are used to investigate the relationship between the European Union tariffs and integration of the Italian GVCs. In the case of Italy, imports to exports are overall less protected than gross imports with significant differences at the sector level. Despite the low levels of nominal protection, industrial sectors play a central role in explaining our results. EU tariffs mostly affect Italian exporting firms in the case of chemical products, wearing apparel and leather products.


2017 ◽  
Vol 63 (No. 7) ◽  
pp. 293-299 ◽  
Author(s):  
Sujová Andrea ◽  
Michal Jakub

The forestry sector provides several social and economic benefits to the whole economy. It is based on the sustainable management of renewable natural resources and production of raw wood. It is therefore able of sustainable growth. The interest of the European Union is to build economy based on renewable natural resources, resulting in the need to pay increased attention to the development and support of the forestry. The aim of the paper is to evaluate the performance of forestry sector in the Czech and Slovak Republics for a period of five years. System of indicators measuring sectorial performance was set up to reach the goal. Obtained results in indicators have shown that the profitability and value added rate of Slovak and Czech forestry are at a high level and the performance is affected by high investment efficiency.


Author(s):  
I. A. Korobkov

The modernization and specialization of the economy in hi-tech and high-value-added goods is the long term goal defined and set forward within the frame of Russian Federation 2020 Concept for the Social and Economic Development. According to the principles and clauses of the abovementioned document these high-tech and high-value-added products in the long run are intended to be exported to the European Union countries. For the foreseeable future EU will remain Russia’s key trade partner and moreover will play an immense and significant role for the integration of the Russian Federation in the international manufacturing and industrial processes. However, considering the high level of economic development of the EU countries and their strong positions in global exports of processed products including hi-tech goods, the export of the manufactures to the EU countries is quite a challenging task for Russia. Currently the manufactures that are supplied to the European Union mainly consist of semi-processed commodities, e.g., metals, diamonds and chemicals. Russian high-value-added products are exported to a limited number of partners; export volumes are comparatively moderate and volatile. However, some high-tech Russian products are successfully exported to the EU countries and meet growing demand from consumers from Central and Western Europe. The share of finished products and high-value-added goods exported to the Central and Eastern Europe slightly exceeds the EU average; the growing machinery and transport equipment sales are determined by an increased supply towards Poland, Slovakia, Bulgaria and Czech Republic.


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