Title :
Econometric analysis of the wood pellet market in Austria
Author :
Kristofel, Christa ; Strasser, Christoph ; Morawetz, Ulrich B. ; Schmid, Erwin
Author_Institution :
BIOENERGY 2020+ GmbH, Wieselburg-Land, Austria
Abstract :
The growing demand in wood pellets has driven up market prices and has accelerated market dynamics in recent years. This article presents an econometric analysis of factors influencing demand and supply of wood pellets in the residential heating sector in Austria. Time series data on prices, quantities, imports and exports between 2000 and 2014 are used in a two-stage least squares (2SLS) regression. Pellets demand is found to be inelastic (-0.67) and pellets supply unit-elastic (1.16). Thus, consumers are highly exposed to price changes resulting from supply shocks.
Keywords :
econometrics; elasticity; industrial economics; international trade; least squares approximations; regression analysis; space heating; supply and demand; wood; 2SLS regression; Austria; export; import; inelastic demand; market dynamics; market price; residential heating sector; supply shock; time series data; two-stage least square regression; unit elastic supply; wood pellet demand and supply; wood pellet market econometric analysis; Elasticity; Europe; Heating; Instruments; Mathematical model; Production; Supply and demand; econometric partial equilibrium model; elasticities; wood pellet market;
Conference_Titel :
European Energy Market (EEM), 2015 12th International Conference on the
DOI :
10.1109/EEM.2015.7216696
