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The Low-carbon Roadmap of the Finnish Forest Industries: An Economic Impact Assessment

Author

Listed:
  • Lintunen, Jussi
  • Ali-Yrkkö, Jyrki
  • Kulvik, Martti
Abstract
In this paper, we analyse the economic impacts of the low-carbon roadmap made for the Finnish forest industries. The analysis is based on a future scenario provided by AFRY. Given the unit prices and production levels of six forest industry production categories, we assess the value added and employment effects to the Finnish economy. If the scenario is fulfilled, the change would be stark compared to the developments in the previous decades. The value added of forest industries would increase 55–75% from 2017 to 2035 and 90–135% from 2017 to 2050. The indirect effects through the value chains would be of similar magnitude. If the development of labour productivity would remain at recently observed levels, the increased forest industry production would maintain the current employment level.

Suggested Citation

  • Lintunen, Jussi & Ali-Yrkkö, Jyrki & Kulvik, Martti, 2020. "The Low-carbon Roadmap of the Finnish Forest Industries: An Economic Impact Assessment," ETLA Reports 105, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:105
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    File URL: https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-105.pdf
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    More about this item

    Keywords

    Forest industry; Climate change; Low carbon; Impact; Value added; Employment;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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