An investigation of China's import demand for wood pulp and wastepaper

• Wood pulp and wastepaper are essential inputs for paper and allied products.
• China has been the leading participant in the global fiber trade.
• China's fiber import was assessed by a differential production model.
• Wastepaper imports were inelastic in both expenditure and price.
• The substitution between wastepaper and wood pulp imports was limited.

Wood pulp and wastepaper are all essential inputs in making paper and allied products. China has been the leading participant in the global fiber trade in recent years. In this study, China's import of wastepaper and wood pulp by supplying source was assessed through a two-stage differential production model. The analyses revealed that wastepaper imports were inelastic in both expenditure and price, the magnitude of price elasticity estimates became larger after considering the variation of total expenditure, and the substitution between wastepaper and wood pulp imports was limited. Rising imports of wastepaper had small effects in reducing the rapidly growing imports of wood pulp by China. Thus, the concern over environmentally detrimental effects of importing virgin wood pulp from countries with poor forest management practices will likely continue.