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Environmentally Driven Industrial Transformation? A Study of Swedish Pulp and Paper Industry 1960-1990

There is no translation available.

Finansiär: Riksbankens Jubileumsfond
Löptid: 2011-2014
Kontakt: Ann-Kristin Bergquist

We explore the interplay between environmental adaptation, technological development and structural change in the Swedish pulp and paper industry from 1960-1990. During this period, the costs for environmental protection in the pulp and paper industry amounted to about 10-15 percentage of total investments. At the same time, significant emission cuts were accomplished. These changes were carried out simultaneously to the Swedish economy undergoing a period of structural crisis and transformation. The high proportion of environmental investments indicates that environmental adaptation interplayed with an ongoing structural change in the industry; effects that have not been explored in research thus far. In practice, increasing demands for pollution control, caused by a new regulation in 1969, coincide with a need for structural changes, increased efficiency and lowered energy costs. Our project aims at enhancing the empirical and theoretical understanding of how demands for environmental protection interplayed with technological and structural changes during the late the 20th century.

Welfare effects of different electricity generating system

Grant: 750 000 sek
Funder: Energiforsk
Duration: 2015
Contact: Bengt Kriström or Runar Brännlund

Industrial Pollution Control through Case-by-Case Licensing

Grant: 2 607 000 sek
Funder: Swedish Environmental Protection Agency
Duration: 2014-2015
Project manager: Patrik Söderholm, Luleå University of Technology
Contact: Ann-Kristin Bergquist

Electricity markets and consumer flexibility

Funder: Swedish Energy Markets Inspectorate 
Duration: 2013-2014
Contact: Thomas Broberg, Runar Brännlund, Lars Persson or Mattias Vesterberg

Read more about project results


Electricity less costly than we think. (published August 24th, 2015)
Flexibility in demand, a matter for the minister of Energy. (published December 1st, 2014)
Better incentives for electricity consumers' flexibility to real time prices. (published June 2nd, 2015)
Working papers
En elmarknad i förändring - Är kundernas flexibilitet till salu eller ens verklig? (Working Paper, published October 13th, 2014)
Is our everyday comfort for sale? Preferences for demand managment. (Working Paper, published June 8th, 2015)

Planning and Managing the Energy Efficiency Gap: the Use of Non-price Interventions to Increase Energy Efficiency

Finansiär: Energimyndigheten
Löptid: 2013-2014

There has for a long time been a debate in the energy and economics literature about the potential to cost-effectively reduce energy demand. There are a vast number of analyses suggesting that the potential is substantial. As an example, the EU has an energy efficiency target to reduce energy demand by 20 percent till 2020. In recent years incomplete information and behavioral anomalies have received more attention in energy economics. If firms and households do not have appropriate information the market solution will most likely not be at the social optimum. Inefficiencies may also arise if households cannot use information effectively due to cognitive limitations or if they under some circumstances act seemingly irrational. In the process of designing the optimal mix of policy instruments it is important to assess the extent of individual market failures and how they effectively can be addressed. In the project we contribute to this work by reviewing the literature and designing the field experiments concerning informational failures and behavioral anomalies in the context of household energy demand.

Energy Use and Energy Efficiency in Swedish Industry

Funder: Energimyndigheten
Duration: 2013-2014

Central to sustainable growth is the EU "Triple 20 by 2020" target, which targets the climate, renewable energy, and energy use. In Sweden the energy target is to reduce the energy to GDP ratio by 20 percent between 2008 and 2020. Reports indicate that the target will probably not be reached without further action. It is important to seek answers on how energy and climate policies affect energy use. The project aims at empirically analyse energy use in Swedish industry and the driving forces behind energy efficiency. Sweden has the ambition to show the way to a sustainable society and needs to invest in economics research to better understand the impacts of energy and climate policies. Internationally speaking the project has access to unique data, and has a direct link to practical politics; the results will definitely serve as a contribution to the discussion of sustainability and energy targets beyond 2020, a discussion already ongoing in the EU and Sweden.

The impact of climate policy on energy use and energy efficiency in Swedish industry

Grant: 4 852 000 sek
Funder: Swedish Energy Agency
Duration: 2013-2015
Project leader and contact: Tommy Lundgren

Central to sustainable growth is the EU “Triple 20 by 2020” target, which targets the climate, renewable energy, and energy use. In Sweden the energy target is to reduce the energy to GDP ratio by 20 percent between 2008 and 2020. Reports indicate that the target probably will not be reached without further action. It is important to seek answers on how energy and climate policies affecting energy use. The project aims at empirically analyzing energy use in Swedish industry and the driving forces behind energy efficiency. Sweden has the ambition of showing the way to a sustainable society and needs to invest in economics research to better understand the impacts of energy and climate policies. Internationally speaking the project has access to unique data, and has a direct link to practical politics; the results will definitely serve as a contribution to the discussion of sustainability and energy targets beyond 2020, a discussion already ongoing in the EU and Sweden.

African Adaptation Gap

Funder: UNEP
Duration: 2013-2014

Climate change will have impacts across the globe, but the African continent is expected to be hit the hardest. Given that Africa has contributed very little to global cumulative Greenhouse Gas emissions, this is exceptionally concerning. Partly to help inform the African delegation to the United Nations Framework Convention Climate Change (UNFCCC) Conference of Parties' (COP) international mitigation negotiations, the United Nations Environmental Program (UNEP) set up a project to investigate the climate change consequences for Africa in terms of adaptation
costs and damages.

This ongoing project has focused on discussing and estimating the resulting adaptation costs and impacts for Africa from the so-called emissions gap. The emissions gap refers to the gap between the UNFCCC COP goals and the current pledges made by the nations of the COP. This project has resulted in several reports and has initiated a new project together with the African Development Bank
to create a more detailed picture of climate change impacts and adaptation costs across different African countries. This project involves several international partners, where CEREs expertise has been in provided long terms projections using an Integrated Assessment Model (AD-RICE).

Visit to *GAEL, Grenoble, France

Grant: 35 050 sek
Funder: the Per and Eivor Wikström’s Foundation
Duration: 2015
Contact: Jurate Jaraite

*Université Grenoble Alpes and Grenoble Applied Economic Laboratory.

Université Grenoble Alpes is France's leading public research centre after Paris, with an established international reputation in several fields. Major facilities, international laboratories and the research and development units of many international companies have located in Grenoble to benefit from its academic and scientific environment. Université Grenoble Alpes collaborates closely with GAEL. GAEL is a joint laboratory of INRA (Institut National de la Recherche Agronomique) and of the University Pierre Mendès-France. Its mission is to conduct research in the areas of agriculture, consumption and environment. GAEL’s main research subject is economics, more specifically industrial economics, experimental economics and environmental economics.

During the visit Jurate learnt about GAEL’s research activities, presented her own research and developed a project together with Oliwia Kurtyka who works as an assistant professor at GAEL. The project focuses on technology transfer to developing countries, namely to India.

A Green Industrial Transition? The Case of the Swedish Pulp- and paper Industry 1960-1990

Funder: Riksbankens Jubileumsfond
Duration: 2011-2014
Contact: Ann-Kristin Bergquist

This project explores the green reconstruction of the Swedish pulp and paper industry, focusing on the interplay between regulatory pressure, technological development and structural change from the 1960s to the 1990s. Increasing demands for pollution control, caused by a new modern
environmental regulation implemented in 1969, coincide with a need for structural changes due to increased international competition, but also a need to phase out oil in the production processes in the wake of the oil crises in the 1970s. In short, our project aims at enhancing the empirical and theoretical understanding of how societies demand for environmental protection interplayed with technological and structural changes within this sector during the late the 20th century and essentially how "green" technology development has been accomplished. Main results from the projects points to the importance of coordinating capacity between firms in "green" R&D.

Development of a relevant and user defined socio-economic model for environmental measures for water power and life

Funder: Kliv
Duration: 2015-2016
Project management: Enveco Miljöekonomi AB
Contact: Bengt Kriström

(only in Swedish)
Att i samverkan med intressenter ta fram en användarvänlig CBA-modell för samhällsekonomisk värdering av vattenkraftrelaterade miljöåtgärder. Samtidigt som CBA-modellen ska vara användarvänlig och så enkel och generellt användbar som möjligt ska den vara teoretiskt relevant utifrån ekonomisk teori och empiriskt relevant utifrån skattningar som har skett med metoder förankrade i ekonomisk teori. Även att i samverkan med intressenter identifiera vilka frågor som ovan beskrivna CBA-verktyg kan besvara och vilka frågor som kan besvaras inom ramen för kompletterande ansatser, särskilt multikriterieanalys, och vilka kriterier som skulle vara relevanta att ta hänsyn till i tillämpningar av multikriterieanalys.

The impact of energy and environmental policy on sustainable development and competitiveness in Swedish industry

Grant: 6.5 million SEK
Financier: Swedish Energy Agency
Duration: 2011-2013
Projectleaders': Tommy Lundgren and Per-Olov Marklund


Researchers and decision makers in politics and business.

The project

The suggested project is unique in the sense of studying the effects based on a broader perspective. The Swedish manufacturing industry is studied and the intention is that the project's results will contribute to an overall picture useful to environmental and energy policy making aimed at a future sustainable society.


Based on the climate- and energy policy objectives established by the EU, the Swedish Government has suggested national objectives to be achieved in 2020, indicating that Sweden stands before extensive efforts. At the prospect of these efforts great importance is attached to economic policy tools, e.g., CO2 and energy taxes, and tradable permits. However, there are few observed findings regarding the effects of these policy tools in a broader perspective, accounting for the entire chain from effects on firm emissions, energy efficiency and energy mix to effects on economic performance, e.g., technological development, productivity, and competitiveness.

Hydropower - Environmental impacts, mitigation measures and costs in regulated waters

The project was a research collaboration between Elforsk, the Swedish Energy Agency, the Swedish Board of Fisheries and the Swedish Environmental Protection Agency.

The aim of the R&D programme was to deliver socially and economically acceptable data and knowledge for environmental measures within hydro power.

Within this third phase of the programme, one large research project was carried out: “Cost-Benefit Analysis of River Regulation: The case of Emån and Ljusnan”. The research project presents an integrated natural-social science approach to Cost-Benefit Analysis (CBA) of river regulation, with a primary focus on the Emån and Ljusnan watersheds. Each watershed required a slightly different analytical focus: water flow considerations in the Ljusnan and fish passage in the Emån. Ecological consequences of alternative
environmental measures were analyzed, values (e.g., costs and benefits) of these measures were developed, various measurement uncertainties have been characterized, and, finally, the data were subjected to state-of-the-art welfare analysis.

Webpage (only in Swedish)

On the Economics of Corporate Social Responsibility - Theoretical and Empirical Analysis of Voluntary Overcompliance

Funderes: Torsten Söderbergs Forskningsstiftelse
Duration: 2013-2014
Contact: Tommy Lundgren

An important part of the sustainability debate has been devoted to what companies can do to facilitate sustainable development, so called corporate social responsibility (CSR). Profit maximization doesn't have to be in conflict with social responsibility as this behaviour may be strategic. Many empirical studies focus on the effects of being socially responsible on firm profitability. To some extent there are also theoretical analyses of CSR, but this research is still in its infancy; more theoretical studies combined with econometric analysis are needed to understand the drivers behind CSR. Furthermore, empirical studies of CSR need a stronger theoretical foundation than what we have seen in literature thus far. Specifically, in the context of CSR, we want to more closely examine the role of preferences, uncertainty, causality, cost of capital, risk, and public policy. It will become evident that these significant elements of economics and finance research agenda are closely linked to CSR.

Bioenergy, the climate, and economics

Grant: 4.5 million SEK
Financier: Formas
Duration: 2009-2012
Projectleaders: Tommy Lundgren and Pelle Marklund
pdf Read the final report
Read CERE Working Paper 2013:1: The Role of the Forest in an Integrated Assessment Model of the Climate and the Economy


Researchers and decision makers in politics and business.

The project

This project investigates the economical and ecological aspects of pursuing energy and climate policy, explicitly the phasing out of fossil fuels in favour of fuels from renewable resources. The general aim is to analyze welfare effects in Sweden from adjusting to the suggested and already made energy and climate policy commitments. Most current research within this field only account for part of the economy and ecological constraints are not sufficiently accounted for. For instance, the complete carbon cycle is in most cases not part of the models, which may give raise to misleading policy decisions. This and other insufficiencies and the urgency of stopping global warming constitute the background to the project.

We now stand before drastic measures aiming at achieving the energy and climate targets that we have undertaken, and we need adequate tools for analyzing a large scale change of the energy system.

Therefore, the general purpose of the project is to contribute to the development of such tools that could be used as reference in designing energy and climate policy. More specifically, we will develop both theoretical and empirical models that adequately accounts for the inter-relation between the economy and ecology. For instance, we will develop an empirical general equilibrium model in order to simulate societal and sectoral effects of varying environmental and energy policy scenarios, of which the purpose is to promote the climate and sustainable use of bioenergy.


The European Union has intensified its energy and climate change ambitions and, as a
Member State, Sweden is expected to make a great effort to meet these ambitions. The
Commission of the European Communities, SEC (2008) 85/3, Impact Assessment, originates
from an agreement between the EU Member States and contains proposals for how the burden of reaching energy and climate targets could be shared amongst nations. Taken together the

Member States have agreed to reduce greenhouse gases by at least 20 percent by 2020
compared to 1990, and provided that a comprehensive international agreement on reductions
comes about the target is set to a 30 percent reduction. In addition the Member States has
made the commitment that renewable energy should constitute 20 percent of total energy
consumption within the EU, including a 10 percent biofuels target for transports.

The legally-binding targets amongst EU's Member States vary and the targets assigned
for Sweden is a 17 percent reduction of greenhouse gases emissions compared to 2005 and a share of renewable energy amounting to 49 percent by 2020. Furthermore, the Swedish government (the department of agriculture) recently announced a proposition to increase the role of the forests as a carbon sink as well as an increase in the use of forest biomass for energy (Government Proposition 2007/08:108).

A CGE Model for Climate and Energy Policy Analysis

Funder: Energimyndigheten
Duration: 2014-2015
Contact: Sanstosh Joshi

A computable general equilibrium (CGE) model is an important tool to analyze not just the part of the economy but to gain insight on economy-wide repercussions of policy questions. Currently, CERE has developed a multi-sectorial, multi-regional CGE model with the possibility to link a technologically detailed electricity sector for a single country. The modeling framework is constructed in such a way that several important policy questions related to climate and energy can be analyzed simultaneously. One of the aims of the project is to investigate how the cost of nuclear phase out in Sweden is affected through its climate and energy policy objectives, i.e. CO2 emission reduction targets, quotas on renewable energy in electricity production and energy efficiency standards.

Conflict over natural resource management: forestry and reindeer husbandry in an economic perspective

Grant: 2.1 million for three years
Financier: Formas
Duration: 3 years (start year 2010)
Projectleader: Göran Bostedt


Forestry, reindeer husbandry, society

The project

The purpose of this project is to investigate and analyze the relationship between forestry and reindeer husbandry from an economic point of view with focus on the costs resulting from consultations and the negative effects from land use. The aim is to develop models possible to use empirically to estimate the different costs. The goal is to develop models which are applicable in different natural resource management where conflicts over land use occur. More specific, the results should be applicable in consultations between forestry and reindeer husbandry.


In northern Sweden the forest is used for multiple purposes by different stakeholder groups, among others forestry and reindeer husbandry. When these stakeholders use the forest resource, forestry using timber and reindeer husbandry using lichen for grazing, negative effekts of land use are imposed on the other sector. To diminish conflicts over land use, the consultations procedure was introduced in the 1970s, extended by the certification systems FSC and PEFC.

Both forestry and reindeer husbandry point out that the understanding of economic prerequisites for land use issues, consultations and externalities, are missing. Research has given a rather clear picture of what these negative effects are, but the economic effect, in monetary terms, has not been discussed. Consultations and their economic effect through transaction costs has also been discussed in previous research, but no monetary terms could be estimated.

Adaptive Management of Fish and Wildlife Population

Adaptive Management of Fish and Wildlife Populations was a research program in Sweden, financially supported by the Swedish Environmental Protection Agency (SEPA). The aim was to evolve the scientific base for management of valuable natural resources in a sustainable way. Questions were addressed in a broad, multidisciplinary way where the human dimensions have an essential role. The program was composed of nine integrated research projects. It started 2004 and terminated 2009.

The limits to growth in a sustainable society: Energy use and area requirements in early modern Sweden

Grant: 1 848 000 SEK
Financier: Riksbankens Jubileumsfond
Duration: 2011-2014
Projectleader: Fredrik Olsson Spjut


International scholars, politicians, public

The project

This attribute should assist international scholars in interpreting the European growth miracle during the 19th century as an ecological transition, which bearing to both globally skewed income distribution and welfare as well as greenhouse gas emissions.


This research project will examine the energy use and associated area requirements in Sweden during the so-called Early Modern Period (1500-1800). Specifically, we seek to quantify and explain energy use, broadly defined as fuel inputs to the manufacturing industry and the households, along with food requirements for labour and households.

Since the period of study precedes the era of fossil fuels these energy requirements were ultimately met by an energy and food production system based on photosynthesis. The energy system and the economic system were therefore dependent on available productive land. Since productive land is roughly fixed, as opposed to other forms of real capital, the system exhibited limits to growth. The project therefore, and in addition to the energy estimates, aims at estimating the area requirements.

The scope of the project will cover the evolution of manufacturing industry and population growth in both a chronological and spatial perspective. A major advantage is the rich availability of hitherto unexplored archival sources, covering foremost fuel consumption in the important metal industries. We consider that the importance of our project is underpinned by our belief that a better understanding of the magnitude of energy use and area requirements during the pre-industrial period contributes to the historical understanding as to why economic growth emerges in Europe and why economic growth presently so profoundly contributes to global warming. Contemporary knowledge covers foremost the Western European core countries.

Sustainable investments, 2006-2012. MISTRA.

MISTRA. Umeå School of Business and Economics (USBE). Principal investigator on sub-project concerning research on corporate social responsibility and sustainable development in Swedish industry. Theoretical modeling and empirical analysis using the economics/financetoolbox. Program leader: Professor Lars Hassel (USBE and Åbo Akademi). CERE's Tommy Lundgren was involved in the project. 

Read the report and watch a film on SIRP the outcome at

Carbon Convergence: Driving Forces and Policy Implications

This project aims to:
  1. synthesize the existing literature on carbon convergence, addressing primarily empirical results and an analysis of its implications for global climate policy implementation, 
  2. empirically analyze the existence of carbon convergence for a large number of countries and examine the factors (e.g., technological advances, institutions) that affect the regional distribution of emission rates, and 
  3. empirically analyze how the various principles for allocation of emission rights can affect different counties' commitments (and hence their willingness to accept global agreements).
The project highlights the potential impact of different types of allocation principles. Special attention is devoted to the principles that are based on per capita emissions as well as those related to income level. Available data allow a broad study of carbon dioxide
emissions in many (though not all) countries.


The research programme PlusMinus focused on how to assess benefits and costs in the area of environmental decision-making. PlusMinus

It aimed at developing theory and methods for applying cost-benefit analysis (CBA) to problems involving environmental policies and management. PlusMinus included an outreach programme that delivered a handbook. The handbook is in Swedish with a few chapters in English. Read it here
Utanför Lysekil

A systems perspective on environmental quality standards.

The purpose of the programme is to analyse legal, political and economy aspects and the interplay between these as well as the introduction of so called environmental quality standards. The programme will mainly focus on environmental quality standards for watercourses within the Swedish outflow of water.

The programme is expected to last three years with a total budget of 15 million SEK. The programme is divided into six subprojects, one of them being more or less an economy project. Main responsible for the entire programme is Lena Gippert, the Swedish Institute for the Marine Environment, Gothenburg. Project leader for the economy subproject is Patrik Söderholm, Luleå University of Technology, Luleå, and deputy project leader is CEREs Runar Brännlund.

The programme is financed by The Swedish Environmental Protection Agency .

Impact of energy and environmental policy on sustainable development and competitiveness in Swedish industry, 2011-2013 (Energimyndigheten)

Principal investigator. Empirical investigation of productivity using state-of-the-art performance measurement techniques. 
Project members: Per-Olov Marklund, Zhou Wenchao, Runar Brännlund, Rolf Färe, Shawna Grosskopf.

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