Current Price Level Research Articles

Natural gas and CO2 price variation: impact on the relative cost-efficiency of LNG and pipelines

This article develops a formal model for comparing the cost structure of the two main transport options for natural gas: liquefied natural gas (LNG) and pipelines. In particular, it evaluates how variations in the prices of natural gas and greenhouse gas emissions affect the relative cost-efficiency of these two options. Natural gas is often promoted as the most environmentally friendly of all fossil fuels, and LNG as a modern and efficient way of transporting it. Some research has been carried out into the local environmental impact of LNG facilities, but almost none into aspects related to climate change. This paper concludes that at current price levels for natural gas and CO2 emissions the distance from field to consumer and the volume of natural gas transported are the main determinants of transport costs. The pricing of natural gas and greenhouse emissions influence the relative cost-efficiency of LNG and pipeline transport, but only to a limited degree at current price levels. Because more energy is required for the LNG process (especially for fuelling the liquefaction process) than for pipelines at distances below 9100 km, LNG is more exposed to variability in the price of natural gas and greenhouse gas emissions up to this distance. If the prices of natural gas and/or greenhouse gas emission rise dramatically in the future, this will affect the choice between pipelines and LNG. Such a price increase will be favourable for pipelines relative to LNG.

Economics of Thermochemical Conversion of Crop Residue to Liquid Transportation Fuel

An economic analysis of producing Fischer–Tropsch (FT) liquid fuel such as diesel from crop residue is presented. The process is thermochemical based involving fast pyrolysis and autothermal reforming (ATR) followed by FT synthesis. A spreadsheet for estimating economics is presented, which is simple to use and transparent in its input parameters and its output. Plant sizes of 2000, 10 000, and 35 000 dry metric tons (t) per day were calculated at 8% return on capital to require sales prices (exclusive of tax) of $3.30, $2.40, and $2.06 per gallon (gal), respectively. U.S. tax would add another ∼$0.50/gallon. A biomass feed stock cost of $61.20/dry t was assumed. Capital cost for the 2000 dry t/day plant is estimated to be $M231. These estimates, of course, must be regarded as rough, but they suggest that even without the benefit of imposed regulations liquid fuel derived from biomass could be competitive at current price levels. Sale of char produced in the pyrolysis step for soil amendment as a byproduc...

トルコ地中海沿岸地方における農業の国際競争力

According to the advancement of Turkey’s accession negotiations with the EU, the need for comprehending the effect of accession on Turkish agriculture is growing.In this article, first, the international competitiveness of agriculture in the Mediterranean region of Turkey is estimated using the Domestic Resource Cost approach.Second, the intra-EU competitiveness of agriculture in the Mediterranean region of Turkey is simulated, focusing on the effect of direct payment scheme. The results Obtained are as follows: (1) All products except for milk in irrigatedareas, especially commercial crops such as maize, orangeand sunflower, have international competitiveness with the current price and technical levels; (2) in the case of accession without direct payment, the price levels will change and therefore the intra-EU competitiveness of basic crops such as wheat and milk will diminish; (3) however, that of wheat will recover with direct payment.The results indicate that there is a high possibility that agriculture in the Mediterranean region of Turkey, with direct payment, will sustain its competitiveness even if Turkey’s accession to the EU is done.

Domestic offset projects in the built environment

Emission reduction activities in the European Union (EU) in- and outside the European Trading System (ETS) thus far have largely taken place separately. One possibility to combine the two is through linking Non-ETS offset project-based crediting schemes in the form of Joint Implementation or domestic offset (DO) projects with the EU ETS. Linking would allow non-ETS offset project-based CO2 credits to be traded within the ETS market. This paper discusses the merits and drawbacks of the implementation of a DO scheme in the built environment in the Netherlands. The built environment can be characterised as a sector with a great diversity and significant energy savings potential. Emphasis is paid on the modalities for estimating energy savings under DO projects. The authors discuss if next to existing EU, national or regional policies in the Netherlands, DO could spur initiatives in sub-sectors or market areas that are difficult to reach with conventional policy instruments. Thus, despite the existing policy framework in this sector, there could be still space for DO to reach the untapped energy savings potential. DO can support activities and technologies that are not covered by other policy instruments, either because they are not part of the instruments focus or are above the minimum requirements of the incumbent policy targets. It is expected that some lessons from this study in the Netherlands can be taken into account also by other countries facing similar market circumstances, which have implemented several policy instruments and are considering DO schemes as an alternative for capturing part of the untapped energy saving potential in their end use sectors. Another possible advantage of DO is that is has the potential to reduce public spending on existing policy goals, when it is considered in conjunction with existing public financing instruments. In order to tap into this potential, there are a series of hurdles in place, like additionality and the current CO2 price levels, while transaction and administration costs must be kept low.

Effects of subsidies on the profitability of energy wood production of wood chips from early thinnings in Finland

To increase the production of wood chips for energy from small-diameter (d 1.3 < 10 cm) stems in thinnings from young forest stands, Finland's Ministry of Agriculture and Forestry provides financial incentives for the production of wood chips through the Sustainable Silviculture Foundation Law (Kemera). As of Autumn 2010, the Kemera incentive system provides subsidies for wood chips derived from small-sized stems of young stands, 16–19 €/m 3 (8.0–9.5 €/MWh) maximum in typical harvesting conditions (average stem size of removal 30–60 dm 3, and whole-tree chip removal 40–70 m 3/ha). Total production costs of small-diameter thinning of wood chips with and without the Kemera subsidies were researched. The effects of the Kemera incentives on the profitability of whole-tree chip production were presented and discussed. Results gave a clear indication that wood chips from small-diameter stems cannot currently be produced without the Kemera subsidies from young stands with typical harvesting conditions at the current price level of small-diameter wood chips (17–18 €/MWh). If operating without the Kemera subsidies at a higher price level of small-diameter wood chips, such as 20 €/MWh, the average stem size of whole trees harvested must be greater than 60–70 dm 3 with short road transportation distances between 20 and 40 km to be economically profitable in Finland.

Energy renovation of single-family houses in Denmark utilising long-term financing based on equity

This paper aims to present an economic overview of the opportunities for energy renovation of single-family houses in Denmark financed over the long term. The paper focuses on the economic difference between energy savings and the repayment of investment. Taking out the average remaining 20% equity in long-term property mortgage loans and utilising it for extensive energy renovation improves both the economy and the extent of included measures. Approximately 30% of energy consumption in Denmark is used for space heating. The existing 1 million single-family houses account for approximately half of this, thus making energy renovation a key factor for the reduction of CO 2 emissions. The conclusions were that in average the possible budget for renovation varied between €20,000 and 40,000 per single-family house. The equity of the house was particularly dependant on geographical location and construction period. Different energy renovation measures were analysed in terms of economy showing that a wide range of specific measures had a positive economic balance for the homeowner from year 1. The economic balance between saved energy and repayment of the investment is however very dependent on the assumed future energy price. An example showed that a typical house from 1925, still in its original form, could yield annual savings for the homeowner of approximately €2600, assuming a future energy price of 0.2 €/kW h. At the current energy price level of 0.1 €/kW h energy renovation in general is almost economically neutral for the homeowner.

Value of Survival Gains In Chronic Myelogenous Leukemia

AbstractAbstract 4736 Background:Tyrosine Kinase Inhibitors (TKI) are the first line therapies for patients with chronic myelogenous leukemia (CML). The value of survival gains to patients associated with TKI treatment—in aggregate or relative to the cost of treatment—is unknown. Methods:Multivariate Cox proportional hazard models are used to construct real-world, community-based estimates of survival improvements in CML associated with the introduction of first-line TKI therapy, controlling for characteristics of patients which may independently affect survival. We then employ an economic framework following Becker, Philipson and Soares (2005) to calculate social value of infra-marginal improvements in survival gains due to treatment with TKIs. Finally, the value of community-based improvements in CML survival from treatment by newer TKIs used in second line is estimated by combining community-based survival data for first-line TKIs, along with clinical data on health improvements for CML patients receiving a TKI in second line. Results:Introduction of first-line TKIs in 2001 is associated with a real-world decrease in the all-cause mortality hazard rate of 0.183 (p < 0.01) for CML patients. A decrease of this magnitude is associated with an increase in life expectancy from 60 to 110 months for treated CML patients with median survival length in 2001. We estimate that patients place an annual value of $110,000 on first-line treatment with TKIs. This implies that for all patients in present and future CML cohorts, the present social value of first-line TKI therapy is $88bn. The present value of costs is estimated to be $8bn, suggesting that more than 90% of social value of TKIs in first line therapy is retained by patients. In second-line CML therapy, use of newer TKI agents is estimated to have created $47bn in social value, of which roughly 88% is retained by patients. This estimated value of the newer TKIs does not incorporate possible benefits in first-line therapy. Conclusions:In total, the TKI class in first and second-line theray has created over $135bn in social value. Approximately 90% of this value is retained by patients; approximately 10% is recouped by manufacturers. These estimates suggest that at current price levels, the vast majority of value created by new therapies in CML is appropriated by patients. In addition, since our estimates of survival community-based improvements are somewhat smaller than those contained in clinical trial estimates, this suggests the potential value of addressing real-world obstacles to efficacy, such as poor adherence. Disclosures:Yin:Precision Health Economics: Consultancy. Penrod:Bristol-Myers Squibb: Employment. Maclean:Bristol-Myers Squibb: Employment. Humphrey:Bristol-Myers Squibb: Employment. Bahceci:Bristol-Myers Squibb: Employment. Lakdawalla:Bristol-Myers Squibb: Consultancy; Precision Health Economics: Equity Ownership.

Agent‐based modeling for ex ante assessment of tree crop innovations: litchis in northern Thailand

AbstractThis study uses an agent‐based model for ex ante assessment of agricultural innovations. The model builds on whole farm mathematical programming (MP) and extends the methodology with a spatial representation of the system, the heterogeneity of farm households and landscapes, and the interaction between farm households. We apply the model in a northern Thai watershed to study the potential of four innovations to increase the profitability of litchi orchards. Cost‐benefit analysis shows that each innovation would increase the profitability of litchi growing; however, the results of the agent‐based model show that at current price levels these innovations alone would not be enough to stem the decline in the area under litchis. The model was validated and the sensitivity of the results tested for variations in the irrigated water supply and liquidity. We report on how farmers responded to these results and discuss the implications for other areas in northern Thailand.

Indian Binani Cements May Delist - Background Report - Oct, 2010

Binani Industries has made the announcement regarding their intention of acquiring the entire public shareholding of Binani Cement and to delist Binani Cement. At the current market price level of Binani Cement, the delisting offer size works out to in the range of about Rs 600 Crores.In this context, its critical to see the shareholding pattern of Binani Cement, to assess the eventual outcome of delisting process through Reverse Book-Building process.Currently, the shareholding breakup of Binani Cement reads as follows: (a) Promoter Binani Industries owns 69.90%, (b) JP Morgan owns 11.59%, (c) Credit Suissee combinedly owns 10.87% through their investment arms Ganesh Prime & Credit Suissee Limestone, and (d) others own 7.64%.If the delisting is to be successful, the promoter has to reach the stake of 90%. That means, Binani Industries should be able to take up their stake from 69.90% to 90% for the delisting to be successful. That is, an addition of 20.1% stake is required.

Impact on Broadband Access to the Internet of the Dual Ownership of Telephone and Cable Networks

In Portugal, the telecommunications incumbent offers broadband access to the Internet, both through digital subscriber line and cable modem. In this article, we estimate the impact on broadband access to the Internet of the structural separation of these two businesses. We use a panel of consumer level data and a discrete choice model to estimate the price elasticities of demand and the marginal costs of broadband access to the Internet. Based on these estimates, we simulate the effect on prices and social welfare of the structural separation. Our results indicate that the structural separation would lead to substantial price reductions. For broadband clients, on average, each household would save 3:37 euros per month, or 14% of the current price levels. Overall, on average, each household would save 2:73 euros per month, or 14% of the current price levels. We test the robustness of our results in terms of: (i) the estimates of the demand elasticities, (ii) the strategic behavior of the firms, and (iii) the market share estimates. There is no evidence of collusion.

Nuclear fuel recycling: National and regional options for the US nuclear energy system

A system dynamics model is applied to study the impact of spent fuel recycling on the US nuclear energy system and the implications of a bilateral hypothetical collaboration between the US and Brazil. In particular, the impact of different options for advanced fuel cycle facilities needed for the US nuclear energy market alone and under a Brazil partnership is studied. Different recycling technology options are considered: (1) thermal recycling of transuranics (TRUs) in Light Water Reactors (LWRs) using Combined Non-Fertile and UO2 Fuel (CONFU); (2) recycling of TRU in fertile-free metallic fuel in fast Actinide Burner Reactors (ABRs); and (3) fast recycling of TRU with UO2 in self-sustaining Gas-cooled Fast Reactors (GFRs). These recycling options are truly advanced and will require significant development, but they allow the evolution of nuclear energy systems with minimum transuranic elements in the nuclear waste, hence reduce the long term environmental burden of the waste. Case studies for different advanced technology introduction dates are examined under a prescribed rate of growth in demand for nuclear electricity. The timing of introduction of recycling is important for proper technology development. In the model, the rate of deployment is restrained by the industrial capacity to build TRU separation plants, as well as the desire for high utilization factor of the deployed facilities over their life time. It is notable that all recycling options result in only modest reductions in total uranium consumption at the end of the century. Due to its unity fissile conversion ratio, early introduction of the self-sustaining GFR recycling scheme leads to the largest reduction in uranium consumption and enrichment requirements, about 20%. On the other hand, the CONFU recycling scheme keeps the TRU inventory in the entire system well below other schemes, and guarantees equilibrium between the generation and consumption of TRU without investments in fast reactors. The three schemes reduce the TRU sent to the repository for disposal by two orders of magnitude, but the ABR and the GFR schemes require the introduction of the more costly fast reactors. The rate of deployment of fast reactors becomes limited by the availability of TRU from LWRs in the last quarter of the century. Moreover, an assessment of the impact on the US nuclear energy system of a major commitment to supply the nuclear fuel cycle needs of other countries, with Brazil as the example, is made. The partnership with Brazil implies that the US recycling facilities would be used at higher utilization factor, and more TRU will be available to start fast reactors in the US. Economic analysis for the US nuclear energy market indicates that the CONFU technology is more attractive at current uranium price level, and that fast recycling becomes as attractive as thermal recycling at much higher uranium prices.

When is Cheap, Cheap Enough to Bridge the Digital Divide? Modeling Income Related Structural Challenges of Technology Diffusion in Latin America

The article presents a model that shows how income structures create diffusion patterns of Information and Communication Technologies (ICTs). The model allows the creation of scenarios for potential cuts in access prices and/or required subsidies for household spending in Mexico, Uruguay, Brazil, and Costa Rica. One analyzed scenario would require the reduction of ICT prices to as low as 4% of the current price levels (to US$ 0.75 per month), or alternatively, a subsidy as high as 6.2% of GDP (a figure comparable to public spending on education plus health). This is the income reality of the poor. Neither existing technological solutions nor existing financial mechanisms are sufficient to cope with this economic reality. The alternatives, such as a prolonged period of public access, are discussed.

Revenue Management with Costly Price Adjustments

We consider a novel variant of the perishable inventory profit management problem faced by a firm that sells a fixed inventory over a finite horizon in the presence of price-adjustment costs. In economics literature, such price-adjustment costs are widely studied and are typically assumed to include a fixed component (e.g., advertising costs), an inventory-dependent component (e.g., inventory relabeling costs), as well as a component that depends on the magnitude of the price adjustment (e.g., cognitive and coordination managerial costs). We formulate the firm's profit management problem as a finite-horizon dynamic program in which the state of the system is described by the inventory level as well as the current price level. We derive first-order properties of the optimal value function and give a complete characterization of optimal policies for the case of ample inventory. Through a set of examples we demonstrate the complex and counterintuitive nature of optimal price-adjustment policies. Consequently, we focus on developing easily computable and implementable heuristics with demonstrably good performance. To this end, we develop and solve a fluid model based on the original stochastic dynamics and propose three fluid-based heuristic policies. We derive expressions for the expected profit generated by each one of these heuristics when applied to the stochastic problem and derive sufficient conditions for the asymptotic optimality of the policies when the initial inventory levels and planning horizons are proportionally scaled up. We test the performance of the heuristics in a numerical study and demonstrate a robust, near-optimal performance of one of the heuristics (which we call the “Fluid Time” heuristic) for a wide range of problem parameters. Finally, we demonstrate the importance of proper accounting of price-adjustment costs in several alternative business settings.

Market implications of new regulations: impact of health and nutrition information on consumer choice

Consumer concern for health impacts of diet has increased the use of nutritional information and claims by agro-food industry. Under the current European legislation on nutrition and health claims and on nutritional labelling, three type of nutritional information can be provided on food products: nutritional facts panel, nutritional claims and health claims. In this context, the aim of the paper is to assess how much consumers' value the provision of three types of nutritional information in a meat product not precisely perceived as healthy, "pork Frankfurt sausages", using a choice experiment. The data comes from a survey conducted in two Spanish medium size towns (Zaragoza and Córdoba) during 2007. A mixed logit model is used to estimate the effect of the nutrition information attributes on consumers' utility and derive their willingness to pay. Results show that all three nutritional and health information items are valued by consumers, although preferences are heterogeneous. Health claims are significantly higher valued than nutritional attributes (facts panel or claim). Estimated market shares show that the use of any of the available labelling options will obtain significant market success even at prices including premiums above current price levels.

Acquisition Management Under Fluctuating Raw Material Prices

We study a continuous‐review acquisition problem, in which the raw material price follows a discrete‐state Markov process and demand is compound Poisson. We show that one optimal policy is of the order‐up‐to type. Under our mean reversion and time continuity conditions, we further show that the order‐up‐to levels are decreasing at the current price level. At the same time, our computational study verifies that both conditions are indispensable for the monotonicity result. The study also hints at the connection between discrete‐ and continuous‐state price processes.

Biomass market and trade in Norway: Status and future prospects

Abstract This paper gives an overview of bioenergy use, prices, markets and markets prospects in Norway. The current energy production based on biomass in Norway is about 50 pJ or 10% of the stationary energy consumption. About one-half is produced and used in forest industries. The main share of bioenergy used by households consists of firewood in stoves. The use of refined, solid biofuels in heat production is hampered by low coverage of water-borne heating systems and historically low end-user prices of electricity. Harvest levels in Norwegian forests are much below annual growth, implying that forest biomass resources steadily accumulate. Decreasing wood prices combined with rising prices of oil and electricity in recent year have improved competitiveness of solid biofuels in the heat market. Projections of future bioenergy use in Norway using a partial equilibrium forest sector model suggest that bioenergy use will increase in some market segments with the current price levels of electricity and oil. However, quite minor improvements of bioenergy competitiveness or increased energy prices may release substantially higher bioenergy use. A net increase in bioenergy use of 5 TWh (18 PJ 1 ) by 2010 is realistic, but requires public awareness of the opportunities in bioenergy technologies, as well as significant economic incentives. Wood stoves and replacement of oil-boilers in central heating systems show highest competitiveness, whereas district heating systems need higher energy prices or more subsidies to be competitive. Biomass for combined heat and power projects or domestically produced liquid biofuels seems to have limited competitiveness in the short term. On the raw material side, wood residues, and roundwood from pine and non-coniferous species represent the main potential, whereas spruce continues to be consumed by the forest industries. According to the model projections, imported biomass will take a significant share of the possible increase of wood consumption in Norway.

Impacts of policy means for increased use of forest-based bioenergy in Norway—A spatial partial equilibrium analysis

Like the European Union (EU), Norway has defined quite ambitious targets regarding increased use of bioenergy. However, the bioenergy market develops relatively slowly, and stronger policies seem necessary to reach the targets. This study analyses how different policy means, high on the agenda in the Norwegian energy debate, may affect the use of forest-based bioenergy in Norway. The means studied are (i) subsidies reducing investment costs of district heating installations, (ii) deposit grant for replacement of oil burners with burners based on bioenergy (iii) feed-in supporting energy production in district heating based on bioenergy. The study is based on a regionalised partial equilibrium model covering forestry, forest industries and the bioenergy sector. The advantage of this methodology is that it allows for assessments of the economic potential of bioenergy under different policy alternatives, taking into account the competition for raw materials from the forest industries, regional differences regarding heat demand and wood fibre supply, as well as important spatial aspects connected to inter-regional transport and trade of wood. The results of the study give medium-term projections for bioenergy use in Norway under different bioenergy policy regimes. Some investments in bioburners in central heating systems and new district heating based on bioenergy are profitable at the current energy prices, but policy incentives in terms of grants, subsidies or feed-in systems make it possible to overcome inertia in investments decisions and provide substantial increase in the supply of bioenergy. The results show that the analysed policy means are effective at the current energy price levels and have a significant impact on bioenergy production. While some results are specific to Norway, other results and the methodology used are of more general value also to other European countries.

생활용수에 대한 소비자의 지불의사 추정 및 정책적 의미

경제이론에 의하면 소비자들은 언제나 효용을 극대화하기 위한 선택에 직면한다. 이 같은 소비자의 선택은 생활용수의 가격, 공급 및 수요 등에 정보가 시장을 통해 나타나고 정책결정자들은 이를 정책 지표로 이용하게 된다. 그러나 수자원의 경우는 시장이 형성되어 있지 않기 때문에 시장에서의 그 같은 정보 획득이 제한적이다. 본 연구는 생활용수의 수질개선에 따른 소비자 지불의사를 1,000 가구를 대상으로 조사하고 이를 추정하였다. 또한 생활용수에 대한 소비행태에 대한 분석도 시도되었다. 소비자들은 현재의 물 값에서 50%의 인상에 대해서는 강한 절수 의지를 보인 반면 25% 이하의 물 값 인상에 대해서는 거의 절수 의지가 없는 것으로 나타나 현행 물 값이 절수를 유도하는 데는 낮은 수준임을 나타내고 있다. 수돗물의 수질이 향상된다는 조건으로 소비자는 매월 현행 물 값의 16%, <TEX>$1m^3$</TEX>당 약 153원을 지불할 수 있음을 보였다. 이 같은 정보를 토대로 생활용수에 대한 정책 제언을 하였다. Economic theory tell us, consumers always make a choice to maximize their utility. In the market system, consumers' choices are revealed and policy maker taking into account the aggregated consumers choice such as price, supply and demand. However, water resources as a public goods, therefore typically there is no market and does no aggregated information for residential water use. This study explore the consumers' willingness to pay for higher quality for residential water. Over 1,000 households responded for this survey and willingness to pay has been estimated. Furthermore, consumers' behaviors of residential water are examined. Consumers are willing to reduce the amount of water use with more than 50% of increasing water price, but stay almost constant with less than 25% of increasing which mean that current price level is not high enough to derive water saving. If consumers can have better quality of water, they willing to pay additional 16%, <TEX>$153\;won/m^3/month$</TEX>, more than their current price. Based on the derived information, we suggested policy direction for residential water policy.

Modeling On-Line Art Auction Dynamics Using Functional Data Analysis

In this paper, we examine the price dynamics of on-line art auctions of modern Indian art using functional data analysis. The purpose here is not just to understand what determines the final prices of art objects, but also the price movement during the entire auction. We identify several factors, such as artist characteristics (established or emerging artist; prior sales history), art characteristics (size; painting medium--canvas or paper), competition characteristics (current number of bidders; current number of bids) and auction design characteristics (opening bid; position of the lot in the auction), that explain the dynamics of price movement in an on-line art auction. We find that the effects on price vary over the duration of the auction, with some of these effects being stronger at the beginning of the auction (such as the opening bid and historical prices realized). In some cases, the rate of change in prices (velocity) increases at the end of the auction (for canvas paintings and paintings by established artists). Our analysis suggests that the opening bid is positively related to on-line auction price levels of art at the beginning of the auction, but its effect declines toward the end of the auction. The order in which the lots appear in an art auction is negatively related to the current price level, with this relationship decreasing toward the end of the auction. This implies that lots that appear earlier have higher current prices during the early part of the auction, but that effect diminishes by the end of the auction. Established artists show a positive relationship with the price level at the beginning of the auction. Reputation or popularity of the artists and their investment potential as assessed by previous history of sales are positively related to the price levels at the beginning of the auction. The medium (canvas or paper) of the painting does not show any relationship with art auction price levels, but the size of the painting is negatively related to the current price during the early part of the auction. Important implications for auction design are drawn from the analysis.

Bioenergy from the forest sector: Economic potential and interactions with timber and forest products markets in Norway

A partial equilibrium forest sector model which is augmented to include bioenergy was applied to project the use of bioenergy based on forest fuels and forest industry by-products in Norway for three different scenarios of the future prices of electricity and oil. The impacts on forestry and forest industries of the different energy price scenarios were also studied. The advantage of the suggested methodology is that it allows for assessments of the economic potential of bioenergy, taking into account the competition for raw materials, the specific heat demand of various regions, and interregional and international trade. Bioenergy will, according to this study, be fairly competitive in some market segments with the current price levels of electricity and oil, and only a minor increase (decrease) in energy (roundwood) prices would release substantially increased bioenergy production levels. Pulpwood prices of pine and non-coniferous species are projected to increase substantially when assuming increasing energy prices. Except for particleboard mills, production levels of forest industries appeared relatively insensitive to the energy price changes.