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Cleantech.com | Accelerating the next wave of innovation
Submitted by Unregistered user (not verified) on March 28, 2008 - 10:22am.
Now wait a minute. I can't follow the logic in this story. If I read it right, the author suggests:
1. Media migrates from paper to electronic outlets
2. Demand for newsprint decreases
3. Decreased demand leads to lower prices for newsprint
4. Lower prices for newsprint lead the paper mill to discover that it's cheaper to use virgin lumber (or mill residuals) than it is to recycle newsprint.
I'm afraid that 4 does not follow from 3. If it is cheaper to make paper from virgin materials than to recycle, it doesn't matter how much you're selling the newspaper for - it's still cheaper to make it from virgin materials. If the fact that fewer people are buying newsprint means that there is in turn less used newsprint available for recycling, leading to higher prices for used newsprint, this could indeed tip the balance and make virgin materials a cheaper input than used newsprint. However, this is not the argument the author makes.
Virgin materials may be cheaper, but without more evidence it doesn't sound like we can blame this on migration to electronic media.
Logic problem...
Now wait a minute. I can't follow the logic in this story. If I read it right, the author suggests:
1. Media migrates from paper to electronic outlets
2. Demand for newsprint decreases
3. Decreased demand leads to lower prices for newsprint
4. Lower prices for newsprint lead the paper mill to discover that it's cheaper to use virgin lumber (or mill residuals) than it is to recycle newsprint.
I'm afraid that 4 does not follow from 3. If it is cheaper to make paper from virgin materials than to recycle, it doesn't matter how much you're selling the newspaper for - it's still cheaper to make it from virgin materials. If the fact that fewer people are buying newsprint means that there is in turn less used newsprint available for recycling, leading to higher prices for used newsprint, this could indeed tip the balance and make virgin materials a cheaper input than used newsprint. However, this is not the argument the author makes.
Virgin materials may be cheaper, but without more evidence it doesn't sound like we can blame this on migration to electronic media.