Spatial production structure and input choices of forest products in Sweden

Abstract A spatially analyse of the production structure and input choices for heating, sawmill, pulp sectors in Sweden is conducted using a panel data set includes quarterly period 2011 to 2016 across 21 counties. Focus on price substitution elasticities, scale effects technical change measures. single-output regional translog cost models developed estimated. The specification chosen its flexibility range alternative hypotheses that can be tested. results indicate relative elastic limited possibilities exploit future reduce variable costs, restriction options, mature technologies still need invested deterioration over time. are usable practitioners, policy decision-makers as well inputs academic modelling, especially when assessing paths towards biobased economy.