Does Differentiation by Certified Raw Wood Change the Average Price at the Tama Roundwood Market Center in Tokyo, Japan?

Abstract

It is important to understand price premiums related to certified raw wood to predict the future of forest certifications from the perspective of forestry enterprises. We focused on identifying the trading roundwood market data in the economic center of power in Tokyo. This study aimed to clarify Tama-certified raw wood prices under the local area certification scheme, forest-certified raw wood prices, and the handling volumes at the Tama Roundwood Market Center in Tokyo. Sales details of the Tama Roundwood Market Center were used to identify the handling volumes, Tama-certified raw wood prices, and FSC (Forest Stewardship Council) or SGEC (Japan-specific Sustainable Green Ecosystem Council)-certified raw wood prices. The FSC and SGEC have operated from the center since 2016. Data were collected from the 2006–2018 fiscal years. Our results showed that the volume of raw wood handled increased due to the regeneration-cutting project conducted by the Tokyo Metropolitan Government. On the other hand, there was no price premium for Tama-certified raw wood under the local certification scheme or for FSC- or SGEC-certified raw wood. Price premiums for forest certifications are necessary for ongoing sustainable forest management. There is a need to increase consumer awareness of forest certifications and to differentiate quality certifications further, and these would likely create price premiums.