Recycling, Certification, and International Trade of Paper and Paperboard: Demand in Germany and the United States

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Korhonen, J.
Toppinen, A.
Kuuluvainen, J.
Prestemon, J.P.
Cubbage, F.W.
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On the basis of data from 2000 to 2010, we investigated the separate effects of the uptake of forest certification and the usage of recycled paper on imports of paper and paperboard into Germany and the United States. Using panel data methods and based on a conventional Armington trade model, we find that the effects of two main forest certification schemes—the Programme for Endorsement of Forest Certification (PEFC) and the Forest Stewardship Council (FSC)— differ between markets. In Germany, the PEFC was negatively related to imports. In the United States, imports were preferred from PEFC-dominated countries. The recycled paper utilization rate interacted negatively with imports, irrespective of import country. We also found that price and income elasticities of demand for both countries were within ranges found by other authors: the long-term relative price elasticity of total import demand ranged from – 0.70 to – 0.78 for Germany and from – 0.78 to – 0.89 for the United States. The elasticity of demand for economic activity was also smaller (between 0.74 and 0.87) for Germany than for the United States (between 0.87 and 0.97).

Subject Keywords
Forests, Certification
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