Analysis of added value through the use of wood from an economic perspective

The study is dedicated to the question, whether and if how, added value through the use of wood can be quantified. After a brief discussion of problems connected with this question (substitutions oil intermediate and finale consumption level, availability of "idle" complementary factors and existence of the respective demand) three necessary prerequisites have been derived. A quantification of the potential added value induced by the removal of one unit of roundwood must be restricted to those branches which (1) have access to a growing timber market (high export shave), (2) produce commodities with a relative high timber share (raw-, semi-finished wood products) and (3) are highly dependent on domestic timber availability (low import share of roundwood, wood products and pulp and paper). In Germany, forestry, the manufacturers of wood products and the manufacturers of pulp and paper comply with these criteria and are therefore further analysed. A partly closed input-output-model (type2) has been applied which allows to analyse the relationship between an additional foreign demand for wood products and pulp and paper oil the one hand and the production of roundwood oil the other hand. The model is calculated with the 2004 input-output-data of the Federal Statistical Office. Processing of one unit roundwood to wood manufactures for export creates a ten times higher added value than the roundwood value. In the case of processing the unit round wood to Pulp and paper the added value call rise up to almost 30 times of the round wood value. Due to the minor significance of timber based energy related to total energy production and consumption in Germany, even the recent input-output-tables show no relationship between the production of wood and the energy sector. For this reason the analysis Could not be extended to the effects on the added value in the energy sector. Finally, a comprehensive economic analysis would require consideration of external effects like climate change mitigation. However, data availability confines the Study to the presented results.