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Exploring the Drivers of Demand for Non-industrial Wood Pellets for Heating
Linnaeus University, Faculty of Technology, Department of Forestry and Wood Technology.
Wageningen Univ & Res Ctr WUR, Netherlands;European Commiss, Italy.
USDA, USA.
European Commiss, Italy.
2018 (English)In: Baltic Forestry, ISSN 1392-1355, E-ISSN 2029-9230, Vol. 24, no 1, p. 86-98Article in journal (Refereed) Published
Abstract [en]

The targets for renewable energy in the European Union (EU) have resulted in a surge in the use of wood pellets. The EU-28 consumption has outgrown domestic production, resulting in increasing net imports. This study analyses the drivers of the use of pellets for heating (non-industrial pellets). An enquiry directed to biomass and pellet organizations indicates that country specific subsidies could be a driver for the purchase of pellet stoves and boilers, resulting in a base level of consumption of non-industrial pellets. Further, light heating oil and natural gas are considered the main heating sources substituted by wood pellets. Econometric analysis indicates that GDP is less important, while the price of wood pellets as well as the price of alternative energy carriers seem to be significant drivers. Models using different combinations of these variables account for 63% to 76% of the variation in non-industrial pellet demand. The results indicate the importance of considering competing fossil-based fuels when modelling wood pellet demand. This aspect is also relevant when new policy measures for a low carbon economy are applied, such as the levying of carbon taxes on fossil fuels.

Place, publisher, year, edition, pages
Institute of Forestry LAMMC , 2018. Vol. 24, no 1, p. 86-98
Keywords [en]
renewable energy policy, wood pellets, heating, econometric analysis, elasticity of demand, carbon tax, natural gas, heating oil
National Category
Energy Engineering
Research subject
Technology (byts ev till Engineering), Bioenergy Technology
Identifiers
URN: urn:nbn:se:lnu:diva-77733ISI: 000443205200011Scopus ID: 2-s2.0-85052952958OAI: oai:DiVA.org:lnu-77733DiVA, id: diva2:1248062
Available from: 2018-09-13 Created: 2018-09-13 Last updated: 2019-07-09Bibliographically approved

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Flinkman, Matti

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf