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Löfgren, Karl-Gustaf
Publications (10 of 44) Show all publications
Aronsson, T., Backlund, K. & Löfgren, K.-G. (2018). Environmental policy, sustainability, and welfare: an economic analysis. Edward Elgar Publishing
Open this publication in new window or tab >>Environmental policy, sustainability, and welfare: an economic analysis
2018 (English)Book (Refereed)
Place, publisher, year, edition, pages
Edward Elgar Publishing, 2018. p. 189
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-145729 (URN)978-1-78195-510-9 (ISBN)978-1-78195-511-6 (ISBN)978-1-78195-512-3 (ISBN)
Available from: 2018-03-15 Created: 2018-03-15 Last updated: 2018-06-09Bibliographically approved
Gong, P. & Löfgren, K.-G. (2016). Could the Faustmann model have an interior minimum solution?. Journal of Forest Economics, 24, 123-129
Open this publication in new window or tab >>Could the Faustmann model have an interior minimum solution?
2016 (English)In: Journal of Forest Economics, ISSN 1104-6899, E-ISSN 1618-1530, Vol. 24, p. 123-129Article in journal (Refereed) Published
Abstract [en]

The growth of an even-aged stand usually follows a S-shaped pattern, implying that the growth function is convex when stand age is low and concave when stand age is high. Given such a growth function, the Faustmann model could in theory have multiple optima and hence an interior local minimum solution. To ensure that the rotation age at which the first derivative of the land expectation value equals zero is a maximum, it is often assumed that the growth function is concave in stand age. Yet there is no convincing argument for excluding the possibility of conducting the final harvest before the growth function changes to concave. We argue that under normal circumstances the Faustmann model does not have any interior minimum. It is neither necessary nor proper to assume that the growth function is concave in the vicinity of the optimal rotation age. When the interest rate is high, the optimal rotation may lie in the interval on which the growth function is convex, i.e. before volume or value growth culminates.

Keywords
Forest economics, Optimal rotation age, S-shaped growth curve
National Category
Economics
Identifiers
urn:nbn:se:umu:diva-124941 (URN)10.1016/j.jfe.2016.06.001 (DOI)000396377500008 ()2-s2.0-84978224346 (Scopus ID)
Available from: 2016-08-31 Created: 2016-08-31 Last updated: 2018-06-07Bibliographically approved
Löfgren, K.-G. & Li, C.-Z. (2015). A dynamic price index theory for deflating green net national product: an illustrative application using data from the United States. Environmental Economics, 6(2), 21-29
Open this publication in new window or tab >>A dynamic price index theory for deflating green net national product: an illustrative application using data from the United States
2015 (English)In: Environmental Economics, ISSN 1998-6041, E-ISSN 1998-605X, Vol. 6, no 2, p. 21-29Article in journal (Refereed) Published
Abstract [en]

This paper is concerned with the welfare significance of real comprehensive NNP based on an exact dynamic price index. We extend the Konus classical index number theory by taking into account current environmental externalities and investment for future consumption enhancement. It is shown that, when deflated with the proper dynamic price index, the real green NNP becomes an ideal measure for welfare comparisons over time. We demonstrate the application of the theory using time series data from the United States over the period from 1959 to 2008.

Place, publisher, year, edition, pages
LLC “СPС “Business Perspectives”, 2015
Keywords
Green NNP, growth, price index, sustainability
National Category
Economics
Identifiers
urn:nbn:se:umu:diva-124776 (URN)
Available from: 2016-08-31 Created: 2016-08-24 Last updated: 2018-06-07Bibliographically approved
Li, C.-Z. & Löfgren, K.-G. (2014). The water and diamond paradox and green NNP as a welfare indicator. Environmental Economics, 5(2), 48-54
Open this publication in new window or tab >>The water and diamond paradox and green NNP as a welfare indicator
2014 (English)In: Environmental Economics, ISSN 1998-6041, E-ISSN 1998-605X, Vol. 5, no 2, p. 48-54Article in journal (Refereed) Published
Abstract [en]

A classical structure that is used to analyze the water and diamond paradox provides an intuitive underpinning to the modern theory of welfare measurement in a growth context. John Law’s and Adam Smith’s concepts of value-in-use and value-in-exchange have modern aggregated counterparts. Complemented with Dupuit’s extension in terms of a utility function with a declining marginal utility, they are close to enough to provide the intuition behind important aspects of modern dynamic welfare measurement. We answer four modern questions: (1) Will an increase in the level of NNP indicate a welfare improvement? (3) Will NNP growth indicate a local welfare improvement? (3) If the answers to (1), (2) are no, what are the underlying reasons? (4) How do the correct welfare indicators look like? At least Dupuit, as an inventor of the consumer surplus, may perhaps have agreed with some of the answers to the modern dynamic approach.

Keywords
the water and diamond paradox, green NNP, welfare measurement
National Category
Economics
Identifiers
urn:nbn:se:umu:diva-124773 (URN)
External cooperation:
Available from: 2016-08-24 Created: 2016-08-24 Last updated: 2018-06-07Bibliographically approved
Gong, P., Löfgren, K.-G. & Roswall, O. (2013). Economic evaluation of biotechnological progress: The effect of changing management behavior. Natural Resource Modeling, 26(1), 26-52
Open this publication in new window or tab >>Economic evaluation of biotechnological progress: The effect of changing management behavior
2013 (English)In: Natural Resource Modeling, ISSN 0890-8575, E-ISSN 1939-7445, Vol. 26, no 1, p. 26-52Article in journal (Refereed) Published
Abstract [en]

The paper assesses the welfare effects of biotechnological progress, as exemplified by tree improvements, using a partial equilibrium model. Timber demand is assumed to be stochastic and the distributions of its coefficients known. The coefficients of a log-linear supply function are determined by maximizing the expected present value of the total surplus of timber production, both in the presence and in the absence of genetically improved regeneration materials. The supply functions are then used to estimate the expected present values of the total surplus in different cases through simulation. These estimates enable us to assess the direct effect and the effect of changing harvest behavior on the expected present value of the total surplus. The main results of the study are (i) the presence of genetically improved regeneration materials has significant impacts on the aggregate timber supply function; (ii) the application of genetically improved regeneration materials leads to a significant increase in the expected present value of the total surplus; and (iii) a considerable proportion of the welfare gain results from the change in harvest behavior. A conclusion we draw from this study is that ignoring the influences of technological and policy changes on behavior can lead to significantly biased welfare estimates. We view the model as a potential approach to conducting counterfactual policy comparisons in economics without forward-looking data.

Keywords
Timber market model, tree improvements, optimal harvest decision, timber supply
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-38167 (URN)10.1111/j.1939-7445.2012.00118.x (DOI)000314775900002 ()
Note

Article first published online: 4 APR 2012

Available from: 2010-11-26 Created: 2010-11-26 Last updated: 2018-06-08Bibliographically approved
Gong, P. & Löfgren, K.-G. (2013). Forest taxation. In: Jason Shogren (Ed.), Encyclopedia of energy, natural resource, and environmental economics: Volume 2 (pp. 176-182). Elsevier
Open this publication in new window or tab >>Forest taxation
2013 (English)In: Encyclopedia of energy, natural resource, and environmental economics: Volume 2 / [ed] Jason Shogren, Elsevier, 2013, p. 176-182Chapter in book (Refereed)
Abstract [en]

This article presents an overview of the application of taxation as a policy instrument in forestry. Forests cover about 30% of the total land area and constitute one of the most important natural resources on the planet. Forests worldwide produce a great amount of timber and various non-wood products, and they provide a wide range of ecological services. Following a brief review of the major forms of inefficiency of forest management in free markets, we discuss the behavioral effects of the general types of taxes targeted at forest assets and forestry income. This is followed by a review of the forest taxation systems in four selected countries (China, Finland, Sweden, and the United States). It is concluded that forest taxation has been used mainly for the purpose of collecting public revenues. Two common forms of inefficiency with respect to forest management are overharvesting (especially in developing countries) of existing forests and underinvestment in reforestation. Forest taxes and subsidies that are effective in correcting one type of inefficiency usually intensify the type of inefficiency. The effectiveness of taxes as a policy instrument to promote sustainable management of forest resources, remain to be evaluated.

Place, publisher, year, edition, pages
Elsevier, 2013
Keywords
Forest tax, Market failure, Policy instrument
National Category
Economics Forest Science
Identifiers
urn:nbn:se:umu:diva-124778 (URN)10.1016/B978-0-12-375067-9.00050-4 (DOI)978-0-08-096452-2 (ISBN)
Available from: 2016-08-24 Created: 2016-08-24 Last updated: 2018-06-07Bibliographically approved
Li, C.-Z. & Löfgren, K.-G. (2013). Genuine savings measurement under uncertainty and its implications for depletable resource management. Environmental Economics, 4(3), 20-25
Open this publication in new window or tab >>Genuine savings measurement under uncertainty and its implications for depletable resource management
2013 (English)In: Environmental Economics, ISSN 1998-6041, E-ISSN 1998-605X, Vol. 4, no 3, p. 20-25Article in journal (Refereed) Published
Abstract [en]

The concept of genuine savings has in recent years become widely accepted as a dynamic welfare indicator, which first appeared in Weitzman (1976) and then "formalized" by Pearce and Atkinson (1993). This paper attempts to generalize this concept in a stochastic setting using the Dasgupta-Heal-Solow growth model under the Merton (1975) type of population growth uncertainty. It is shown that the formula for genuine savings under uncertainty also involves a variance component reflecting the welfare loss from risk aversion (cf. Li and Lofgren, 2012). Moreover, the welfare implications of the risk-adjusted genuine savings on depletable resource management are explored.

Keywords
genuine savings, uncertainty, depletable resource, welfare measurement
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-67141 (URN)
Available from: 2013-03-14 Created: 2013-03-14 Last updated: 2018-06-08Bibliographically approved
Löfgren, K.-G. & Gong, P. (2012). Economic modeling in forestry: avoiding the Lucas critique. In: Kant, S. (Ed.), Post-Faustmann Forest Resource Economics: New Frontiers of Natural Resource Economics. Springer
Open this publication in new window or tab >>Economic modeling in forestry: avoiding the Lucas critique
2012 (English)In: Post-Faustmann Forest Resource Economics: New Frontiers of Natural Resource Economics / [ed] Kant, S., Springer, 2012, , p. 21Chapter in book (Other academic)
Place, publisher, year, edition, pages
Springer, 2012. p. 21
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-40273 (URN)
Note

In press.

Available from: 2011-02-21 Created: 2011-02-21 Last updated: 2018-06-08Bibliographically approved
Löfgren, K.-G. (2012). Elinor Ostrom och Allmänningarnas problem: ElinorOstrom and the Problem of the Commons. Ekonomiska Samfundets Tidskrift (2), 86-93
Open this publication in new window or tab >>Elinor Ostrom och Allmänningarnas problem: ElinorOstrom and the Problem of the Commons
2012 (Swedish)In: Ekonomiska Samfundets Tidskrift, ISSN 0013-3183 (Print), no 2, p. 86-93Article in journal (Other academic) Published
Abstract [sv]

Allmänningarnas problem har varit kända åtminstone sedan 1700-talet. Sätten att hantera dem är framtagna under 1900-talet. Det fanns till att börja med två skolor; s.k. Pigouvianska skatter och upprätthållandet av välspecificerade äganderätter. Den nyligen bortgångna Ekonomipristagaren Elinor Ostrom har under slutet av 1900-talet, i stort sett på egen hand, arbetat men en institutionell ansats som har fått ett stort genomslag i teori och praktik. Denna uppsats försöker sammanfatta vad hon åstadkommit. Vad hon tillfört är en fördjupad analys av detaljer i verkligheten som visar hur ett spektrum av institutionella lösningar kan uppstå, ofta endogent, inom samfälligheten.

Place, publisher, year, edition, pages
Helsingfors: Ekonomiska Samfundet i Finland, 2012
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-60157 (URN)
Available from: 2012-10-02 Created: 2012-10-02 Last updated: 2018-06-08Bibliographically approved
Aronsson, T., Cialani, C. & Löfgren, K.-G. (2012). Genuine saving and the social cost of taxation. Journal of Public Economics, 96(1-2), 211-217
Open this publication in new window or tab >>Genuine saving and the social cost of taxation
2012 (English)In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 96, no 1-2, p. 211-217Article in journal (Refereed) Published
Abstract [en]

Following the 1987 report by The World Commission on Environment and Development, the genuine saving has come to play a key role in the context of sustainable development, and the World Bank regularly publishes numbers for genuine saving on a national basis. However, these numbers are typically calculated as if the tax system is non-distortionary. This paper presents an analogue to genuine saving in a second best economy, where the government raises revenue by means of distortionary taxation. We show how the social cost of public debt, which depends on the marginal excess burden, ought to be reflected in the genuine saving. By presenting calculations for Greece, Japan, Portugal, U.K., U.S. and OECD average, we also show that the numbers published by the World Bank are likely to be biased and may even give incorrect information as to whether the economy is locally sustainable.

Place, publisher, year, edition, pages
Amsterdam: Elsevier, 2012
Keywords
welfare change, investment, saving, taxation
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-47547 (URN)10.1016/j.jpubeco.2011.10.002 (DOI)000299497900018 ()
Funder
Swedish Research Council, 421-2010-1420
Available from: 2011-09-22 Created: 2011-09-22 Last updated: 2018-06-08Bibliographically approved
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