Wood fuel supply as a function of forest owner preferences and management styles

The commercial demand for wood fuel is rapidly increasing in Sweden, and the domestic supply comes primarily from private non-industrial forest owners. A model was developed to analyse decision-making among these private forest Owners. The model covers five factors: economics, transaction costs, concerns about soil fertility, forestry, and previous experience. It was applied in a survey among forest owners in four communities in central Sweden in 1999. Wood fuels had been sold from 60% of the estates. Analysis suggests that the price paid had little influence on the decision to sell. Transaction costs had been alleviated by the traditional timber buyer organizing the fuel trade, and by minimizing measurement in the forest. The primary reason for selling wood fuel was that the harvesting operation cleared the ground of debris, There is a general concern for loss in soil fertility due to wood fuel harvesting which is why some owners do not sell forest fuels. Two types of fuel-selling forest owners were identified: (1) an active manager seeking different gains from wood fuel harvest, and (2) an owner who primarily relies an the advice of the timber buyer. The findings indicate that large-scale traders of wood fuels have to be active in increasing supply, making direct contact with forest owners, and connecting trade with information on ecological and silvicultural effects. Offering ash recycling may enhance supply more than marginal price increases. (C) 2002 Elsevier Science Ltd. All rights reserved.