Considerable costs with power outage

The cost for industries when it comes to electricity supply interruptions are considerable. It also appears to increase over time, according to recent EFORIS report by CERE members.

“In 2016 the estimated cost of a one-hour outage for an average industrial facility in Sweden was approximately 23 times larger than the value of the electricity not delivered (SEK 9502 versus SEK 400), whereas the cost in 2004 was approximately 13 times the market value of the electricity not delivered.” The value of lost load in Swedish industry, EFORIS report 2021:787

The numbers varies across firms and sectors from about 120 and 105 times the market value of the failed delivery of electricity for an average motor vehicle firm to about five times the value in the pulp and paper industry. The production interruption is noticeable longer than the actual power outage according to the firms answering the study survey.

Read the report “The value of lost load in Swedish industry”, EFORIS report 2021:787 & CERE WP 2021-14.

People still need toilet paper

Runar Brännlund comments on what a total stop of Swedish forestry and forest industry would entail.
Only available in Swedish, click on headline to read the full story in Swedish. 

Karl-Gustaf Löfgren

We have lost a good friend and esteemed colleague. Karl-Gustaf, or Kalle as we said, was born in Holmsund and remained faithful to Holmsund throughout his life. He began studying at Umeå University in 1963, graduated with a licentiate degree in 1972 and a doctorate in 1977. During the period 1979-1988, Kalle was professor of forest economics at the Swedish University of Agricultural Sciences in Umeå, and 1988-2010 professor of economics at Umeå University. Kalle was elected a member of the Royal Swedish Academy of Forestry and Agriculture in 1995 and of the Royal Swedish Academy of Sciences in 1999. In the latter, he was for several years active in the committee for the Riksbank's Prize in Economic Science in memory of Alfred Nobel. He was also an elected member of the Royal Skyttean Society and an honorary doctor at the Swedish University of Agricultural Sciences and the University of Helsinki.

Kalle's main research areas were labor market economics, natural resource economics (mainly forest economics) and environmental economics. In the field of labor market economics, he studied, among other things, wage formation and labor market policy. Kalle's most important contribution in the field of natural resource economics was to integrate natural resources and, above all, forestry into modern microeconomic theory. Some examples are modeling of forest owners' decision problems and optimal choices, goal conflicts in connection with forestry, and how the timber markets work. In the field of environmental economics, he worked primarily with theory formation on green national accounts and their connection to measures of economic welfare and sustainable development.

Kalle has been a great role model for many of us with his never-ending energy and ability to enthuse. Kalle's door was always open, and he always took the time to talk, regardless of whether it was about Sandvik IK's latest match, or whether it was about solving differential equations. His scientific rigor, combined with his enthusiasm, has been crucial to many of us who got to know Kalle. It can be said without exaggeration that Kalle was the role model we had in the formation of CERE and what we wanted CERE to be. He is deeply missed by all of us, colleagues, former doctoral students and friends in Sweden and around the world.

Runar Brännlund
In memorian Kalle

Foton: Juan Inda och Jenny Svennås-Gillner

Green transition and impacts on industrial labor demand

The green transition will influence working conditions on many labor markets. The changes bring opportunities and challenges; some jobs disappear, new ones are created. To succeed with the green transition, society needs to assess the effects on employment in the sectors significant to the transition and this is the subject of a new research project that starts November 1st, 2021. (Click on headline to read more) 

Changing of the guards

On October 1 st, Tommy Lundgren makes a switch and becomes the Research Director whilst Göran Bostedt assumes the Deputy role. They will continue to carry the torch and hope to focus on increased cooperation both internally and externally.

According to the Härnösand lads Tommy and Göran, the CERE core will remain intact: - It is an incredibly stimulating environment to work in and it has been important to me, says Tommy. Göran reminds us of the early days of CERE and what contributed to the success: - The extremely competent and driven Post Docs that we recruited, and the active international exchange with, among other things, short intensive courses by prominent researchers, was two of the main things that initially boosted CERE.

As Tommy puts it, there are some “big slippers to fill”. Replacing Runar Brännlund and Bengt Kriström is an impossible task as they have been crucial for the creation, development, and success of CERE. Tommy and Göran however, are not afraid of the task and even if they want to find their feet first, there are ideas on increasing cooperation, internally, inter-disciplinary and internationally: - We at CERE have, and have had, several researchers from developing countries, and we can make better use of the knowledge and interest they have for environmental and resource issues in their home countries, says Göran Bostedt.

Regardless, everyone will recognize CERE, says Tommy and Göran, it will still be a collaboration between researchers in Economic History, Economics at the Umeå School of Business, Economics and Statistics at Umeå University, and Forest Economics at SLU. The focus will continue to be on the environmental, resource and energy economics. Both speak highly of the “CERE gang”, the commitment and drive that exists and they believe that the upcoming return to the workplace following the pandemic will provide an opportunity to push forward. CERE's gatherings have been sorely missed during the pandemic: - Especially good memories I have from my time at CERE are the inauguration in 2009, all Ammarnäs and Ulvö meetings, the many seminars with researchers from different disciplines and the 10th year anniversary in 2019 which nicely summariezed CERE's first decade. Now we move on and create new memories! Tommy concludes.

Göran BostedtTommy Lundgren

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