Determinants of Sawnwood Consumption in Slovakia

Abstract

This paper aimed to determine coniferous and non-coniferous sawnwood demand drivers and used historical data on their development as independent variables in the sawnwood demand models. The study presented a general form of ad hoc model that explained sawnwood consumption per capita as a function of a range of socio-economic factors. Based on the theory of demand, the most important factors were identified to enter the regression model including significant price and income variables. In the case of the non-coniferous sawnwood model, time lag variables were applied. The results of the estimated econometric models confirmed the presence of different explanatory variables for both types of sawnwood. While consumption per capita of both coniferous and non-coniferous sawnwood was determined by the activities of the construction sector, and demand appeared to be very elastic in relation to the number of completed dwellings, the price and substitution for other wood materials had a significant impact only on non-coniferous sawnwood.