Deciphering the source of technological change: Greenhouse gas emission reductions in the British Columbia forest industry between 1990 and 2005

Canada ratified the Kyoto Protocol in December 2002. For Canada to meet its greenhouse gas (GHG) emissions reduction commitments under the Protocol, actions by numerous industries will be required. The forest industries of British Columbia are the largest producer of GHGs in the province. In recent years, the industries have experienced an impressive drop in GHG emissions even though overall production has increased. In this thesis, I seek to explain the technological reasons for these decreases. Specifically, I analyze the source of technical change that led to GHG reductions in the British Columbia forest industry over the 15-year period from 1990 to 2005. My results demonstrate that technical change was induced by factors such as provincial government regulations, staying competitive through reducing energy costs, the opportunity to be carbon neutral through biomass utilization, and consumer demand.