umu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
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
Evaluating market efficiency without price data: The Swedish market for wood fuel
Umeå University, Faculty of Social Sciences, Department of Economics.
Umeå University, Faculty of Social Sciences, Department of Economics.
Umeå University, Faculty of Social Sciences, Department of Economics.
2004 (English)In: Applied Economics, ISSN 0003-6846, E-ISSN 1466-4283, Vol. 36, no 1, 31-39 p.Article in journal (Refereed) Published
Abstract [en]

The overall objective of this paper is to analyse the price development and price formation for wood fuel used by the Swedish district heating sector. According to Lnner et al., there is a significant potential for increasing the use of wood fuel in Sweden, at a fairly moderate cost. The basic question raised in this paper is then why this potential is not realized. Specifically, a methodology is proposed for testing whether the reason is that market imperfections are present. As a first step the shape of the technology in the Swedish district heating sector is estimated for the period 1989 to 1996. In the second step the estimated technology and the assumption of cost-minimizing firms are combined to calculate shadow prices, i.e. marginal valuation of wood fuel in this sector. If the average shadow price significantly deviates from the average observed price one may conclude that this market is functioning inefficiently due to imperfections. According to constructed bootstrap confidence intervals this difference is significant only for three out of eight years, implying that the quantities of wood fuel traded are too small. For the other years the difference is not significant, implying that one cannot, on statistical grounds, reject the efficient market hypothesis for all years.

Place, publisher, year, edition, pages
Routledge Taylor Francis Group , 2004. Vol. 36, no 1, 31-39 p.
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-26889DOI: 10.1080/0003684042000177170OAI: oai:DiVA.org:umu-26889DiVA: diva2:274633
Available from: 2009-10-30 Created: 2009-10-30 Last updated: 2017-12-12Bibliographically approved
In thesis
1. Factor Demand and Market Power
Open this publication in new window or tab >>Factor Demand and Market Power
2004 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The objective of Paper [I] is to analyze potential effects on the Swedish forest sector of a continuing rise in the use of forest resources as fuel in energy generation. An increasing use of forest resources as an energy input may have effects outside the energy sector. In this paper we consider this by estimating a system of demand and supply equations for the four main actors on the Swedish roundwood market.

In Paper [II], we estimate a dynamic factor demand model for the Swedish pulp industry. We find weak evidence of adjustment costs for capital. The results suggest that the user cost of capital is a significant determinant of pulp industry investments. We also find that pulp industry investments are insensitive to variations in the price of electricity.

Paper [III] proposes a flexible form of adjustment cost function. An empirical illustration shows that the flexible form can detect both convex and non-convex adjustment costs. Furthermore, the flexible form permits testing for the experience effect on adjustment cost.

The objective of paper [IV] is to analyze the price formation for wood fuel used by the Swedish district heating sector. According to previous research there is a significant potential for increasing the use of wood fuel in Sweden. The question raised in this paper is why this potential is not realized. According to our results we cannot reject the efficient market hypothesis for all years.

The objective of Paper [V] is to test for market power on the market for biofuels. To achieve our objective we make use of the idea of Granger causality. If past values of quantity contribute significantly to the determination of price, quantity is said to Granger cause price, which we will treat as a sign of market power. According to our findings this effect is present.

Place, publisher, year, edition, pages
Umeå: Umeå universitet, 2004. 98 p.
Series
Umeå economic studies, ISSN 0348-1018 ; 633
Keyword
Economics, demand and supply, dynamic factor demand, adjustment costs, bootstrap, panel data, market power, Nationalekonomi
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-279 (URN)91-7305-670-7 (ISBN)
Distributor:
Nationalekonomi, 90187, Umeå
Public defence
2004-06-04, Hörsal S213h, Samhällsvetarhuset, Umeå Universitet, Umeå, 13:15 (English)
Opponent
Supervisors
Available from: 2004-05-12 Created: 2004-05-12 Last updated: 2009-12-23Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Brännlund, RunarMarklund, Per-Olov
By organisation
Department of Economics
In the same journal
Applied Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 68 hits
CiteExportLink to record
Permanent link

Direct link
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