Efficient and Sustainable Bioenergy Production in Swedish Forests – A Network DEA Approach

CERE Working Paper, 2019:12

25 Pages Posted: 15 Oct 2019

See all articles by Wenchao Zhou

Wenchao Zhou

Swedish University of Agricultural Sciences (SLU) - Center for Environmental and Resource Economics (CERE)

Moriah Bostian

Lewis & Clark College - Department of Economics

Rolf Färe

Oregon State University - Department of Economics

Shawna Grosskopf

Oregon State University

Tommy Lundgren

Umea School of Business and Economics

Date Written: October 3, 2019

Abstract

Forest fuel defined as branches and tops (GROT) of harvested trees represents a large share of forest biomass and is increasingly viewed as a potential energy source. This study assesses the economic potentials of forest bioenergy production in Swedish forests, using a network data envelopment analysis (DEA) model to estimate the technology for biofuel and other forest products. We consider that forests are managed to use multiple inputs to produce multiple outputs. Outputs include sawtimber, pulpwood, fuelwood, and bioenergy in terms of GROT. Our model also considers environmental concerns over biodiversity and CO2 emissions from burning biomass. We apply the network DEA model to measure the revenue efficiency of forest production of Swedish forests using a panel consisting of 20 counties and covering the years from 2008 to 2014. Our results show that there exist persistent economic inefficiencies of forest production in some counties, reducing the overall efficiency of Sweden’s forest and wood products industry. In addition, we also estimate the potential increase in bioenergy, deadwood and CO2 emissions reduction from combustion of bioenergy and by-products from sawtimber and pulpwood.

Keywords: Climate, Bioenergy, Efficiency, Environment, Forests, Network

JEL Classification: D20, D21, D22, D24

Suggested Citation

Zhou, Wenchao and Bostian, Moriah and Färe, Rolf and Grosskopf, Shawna and Lundgren, Tommy, Efficient and Sustainable Bioenergy Production in Swedish Forests – A Network DEA Approach (October 3, 2019). CERE Working Paper, 2019:12 . Available at SSRN: https://ssrn.com/abstract=3463714 or http://dx.doi.org/10.2139/ssrn.3463714

Wenchao Zhou (Contact Author)

Swedish University of Agricultural Sciences (SLU) - Center for Environmental and Resource Economics (CERE) ( email )

Almas Allé 10
Umeå, 750 07
Sweden

Moriah Bostian

Lewis & Clark College - Department of Economics ( email )

Portland, OR 97204
United States

Rolf Färe

Oregon State University - Department of Economics ( email )

303 Ballard Extension Hall
Corvallis, OR 97331
United States
541-737-8184 (Phone)
541-737-5917 (Fax)

Shawna Grosskopf

Oregon State University ( email )

303 Ballard Extension Hall
Corvallis, OR 97331
United States
541-737-8184 (Phone)

Tommy Lundgren

Umea School of Business and Economics ( email )

Biblioteksgränd 6
Umea, 901 87
Sweden

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