Modeling Per Capita Demand of Wood Products in Greece: Variables with Impact to Demand and Forest Management Implications

Abstract

The current study presents the trends of wood product trade in Greece during the last several decades. Greece, like many Mediterranean countries, is a net importer of wood and wood products and has established a consecutive dependency on imports during the past few decades. Variables like income and import prices are tested in order to highlight their meaningfulness on the demand for wood and wood products. Analysis based on multiple linear double log models showed that import prices were found to be the most important variable for wood panels and paper demand. Simultaneously, income was found to be the most important for wood fuel demand, as was expected. Income and import prices were found to be elastic regarding the demand for wood panels and paper. More, income was found to be inelastic to wood fuel demand. Further analysis of the above factors suggests a new forest policy plan based on the development of the current forest ecosystems and the creation of new forests through afforestation and reforestation, using native species in order to constrain the amount of expensive imports. From this perspective, a new forest policy based on sustainable forest management could lead to the increase of production and new investments in the national forest sector.