Price formation on the Swedish woodfuel market

摘要

The Swedish woodfuel market has grown rapidly in the past ten years. Government policy has strongly supported this development and environmental taxes on fossil fuels have been introduced. This has favoured untaxed biofuels, i.e. woodfuels, in the district heating sector where the market has grown very rapidly. This study on price formation is based on the earlier knowledge of the market and shows that the woodfuel market has been a dramatic increase combined with falling prices. Unrefined wood fuels demonstrate an annual volume increase of 13 while real prices have fallen at an annual rate 5 during the first half of the 1990s.