On September 30th, doctoral candidate Örjan Furtenback publicly defended his PhD thesis:

"Three Essays on Swedish Energy and Climate Policy Options - Dynamic CGE-Models with Heterogenous Forests and an Econometric Model of Fuel Substitution in District Heating Plants." The opponent was Professor Lars Mathiesen from the Norwegian School of Economics.

Örjans main contribution, besides an empirical investigation of the inter-fuel substitution in the Swedish district heating industry, is a Dynamic economic-ecological Computable General Equilibrium model of the forest sector.

The abstract of the third paper in the dissertation read:
Paper III: A dynamic CGE-model with heterogeneous forest biomass: Applications to climate policy.
This study introduces a framework for modeling a renewable forest biomass stock interacting with economic sectors in a competitive economy. The equilibrium is formulated as a mixed complementary problem (which explicitly represents weak inequalities and complementarity among decision variables and equilibrium conditions). The complementarity format permits detailedmodeling of the growth and harvest of a biomass stock together with a second-best characterization of the overall economy. First the complementarity features of economic equilibrium and its integration with an ecological representation of the biomass stock are provided. Then a stylized numerical example of a dynamic computable general equilibrium model is presented. Finally, illustrative applications of the model for gauging the likely effects of environmental subsidies and taxes intended to promote increases CO2
storage in forest biomass are given, the results are discussed.

Commodity inputs to the forest industry and the flow through process to final products in 2004. Modified from Nilsson (2006). Numbers referes to Mt dry bio-mass matter.


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