Furtenback, Örjan
- Department of Forest Economics, Swedish University of Agricultural Sciences
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 1989-2003, specifically those plants incinerating waste. A multi-output plant-specific production 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 CO(2) 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 increase 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. (C) 2008 Elsevier Ltd. All rights reserved.
Waste Management
2009, volume: 29, number: 1, pages: 285-292
Publisher: PERGAMON-ELSEVIER SCIENCE LTD
SDG12 Responsible consumption and production
Environmental Sciences
https://res.slu.se/id/publ/49504