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

Jussi Lintunen, Jyrki Ali-Yrkkö and Martti Kulvik

No 105, ETLA Reports from The Research Institute of the Finnish Economy

Abstract: 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.

Keywords: Forest industry; Climate change; Low carbon; Impact; Value added; Employment (search for similar items in EconPapers)
JEL-codes: L6 L73 Q01 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2020-06-17
New Economics Papers: this item is included in nep-agr and nep-env
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