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Fuel substitution in district heating plants and CGE modeling with a forest resource

Furtenback, Örjan (2009). Fuel substitution in district heating plants and CGE modeling with a forest resource. Umeå : Sveriges lantbruksuniv. , Rapport / Sveriges lantbruksuniversitet, Institutionen för skogsekonomi, 0348-2049 ; 134
ISBN 978-91-86197-82-7
[Licentiate thesis]

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Abstract

This thesis contains two papers. Paper I: Demand for waste as fuel in the Swedish district heating sector: a pro- duction function approach This paper evaluates inter-fuel substitution in the Swedish district heating industry by analyzing almost all the district heating plants in Sweden in the period 1989 to 2003, specifically those plants incinerating waste. A multi-output plant-specific pro- duction function is estimated using panel data methods. A procedure for weighting the elasticities of factor demand to produce a single matrix for the whole industry is introduced. The price of waste is assumed to increase in response to the energy and CO2 tax on waste-to-energy incineration that was introduced in Sweden on 1 July 2006. Analysis of the plants involved in waste incineration indicates that an in- crease in the net price of waste by 10% is likely to reduce the demand for waste by 4.2%, and increase the demand for bio-fuels, fossil fuels, other fuels and electricity by 5.5%, 6.0%, 6.0% and 6.0%, respectively. Paper II: Towards a dynamic Ecol-Econ CGE model with forest as biomass cap- ital This study presents a Dynamic Computable General Equilibrium model that com- bines economic and ecological aspects of forest biomass. A framework is introduced for modeling the growth of a biomass stock which interacts with economic sectors. Harvest of and demand for forest products and forest amenities are determined en- dogenously in an inter-temporally consistent way. The idea is based on aMarkovian growth model of the forest. The study demonstrates an approach for incorporating non-market values of forests, such as carbon sequestration, recreation and biodi- versity, into a growth model. A simulation illustrates harvest behavior when the economy is subjected to shocks.

Authors/Creators:Furtenback, Örjan
Title:Fuel substitution in district heating plants and CGE modeling with a forest resource
Year of publishing :2009
Volume:134
Number of Pages:15
Papers/manuscripts:
NumberReferences
ALLI Demand for waste as fuel in the Swedish district heating sector:a production function approach. Waste management 29 (2009) 285-292 II CERE WP #6: Furtenback, Ö. (2010). Towards a dynamic Ecol-Econ CGE model with forest as biomass capital. www.cere.se
Place of Publication:Umeå
ISBN for printed version:978-91-86197-82-7
ISSN:0348-2049
Language:English
Publication Type:Licentiate thesis
Full Text Status:Public
Agrovoc terms:biofuels, waste management, models, economics, sweden
Keywords:Cobb-Douglas production function, factor demand, inter-fuel substitu- tion, waste management, Dynamic CGE, Markovian growth, Ecosystem modeling, Inter-temporal optimization, Infinite-horizon equilibria
URN:NBN:urn:nbn:se:slu:epsilon-3079
Permanent URL:
http://urn.kb.se/resolve?urn=urn:nbn:se:slu:epsilon-3079
ID Code:2305
Department:(S) > Dept. of Forest Economics
Deposited By: Örjan Furtenback
Deposited On:07 Jun 2010 00:00
Metadata Last Modified:02 Dec 2014 10:17

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