Farm-related Factors Influencing the Adoption of Short-rotation Willow Coppice Production Among Swedish Farmers

The area of short-rotation willow coppice energy plantations on Swedish farmland increased quickly in the early 1990s because of subsidies for energy crop production, an increased CO₂ tax on fossil fuel and an already existing biofuel market in the country. In this study farm-related determinants for the adoption of short-rotation willow coppice production among Swedish farmers are identified and estimated. A Tobit model is applied to cross-sectional data on Swedish farmers in 1995. The results show that the decision to plant willow and the areas planted depend positively on arable land area, forest land area, the area of other land types, leasing out of arable land and tractor ownership. Negative factors are pasture area, tenancy and animal production. Differences in willow growing between ownership types, age groups and geographical regions are also important. The policy implications of the results are discussed.