The economics of forest bioeconomy: new results

We examine the emerging forest bioeconomy as an integrated, multi-product industrial ecosystem, where traditional pulp mills allocate use of side streams to independent biochemical companies manufacturing bioproducts in vicinity mills. Biochemical benefit from proximity by receiving wood-based at lower costs, and same time, having a new source revenue selling streams. focus on economic interaction between mill company, we study impacts wood profits under perfect imperfect competition. demonstrate that ecosystem uses more than mills, but depending stream, it may promote cascading