Innovation-led transitions in energy supply
By: Lemoine, Derek
.
Material type: 
BookPublisher: American Economic Journal: Macroeconomics Description: 16(1), Jan, 2024: p.29-65.
In:
American Economic Journal: MacroeconomicsSummary: Generalizing models of directed technical change, I show that complementarities between innovations and factors of production (here, energy resources) can drive transitions away from a dominant sector. In a calibrated numerical implementation, the economy gradually transitions energy supply from coal to gas and then to renewable energy, even in the absence of policy. The welfare-maximizing tax on carbon emissions is J-shaped, immediately redirects most research to renewables, and rapidly transitions energy supply directly to renewables. The emission tax is twice as valuable as either the welfare-maximizing research subsidy or the welfare-maximizing mandate to use renewable resources.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mac.20200369
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Articles
|
Indian Institute of Public Administration | 16(1), Jan, 2024: p.29-65 | Available | AR131316 |
Generalizing models of directed technical change, I show that complementarities between innovations and factors of production (here, energy resources) can drive transitions away from a dominant sector. In a calibrated numerical implementation, the economy gradually transitions energy supply from coal to gas and then to renewable energy, even in the absence of policy. The welfare-maximizing tax on carbon emissions is J-shaped, immediately redirects most research to renewables, and rapidly transitions energy supply directly to renewables. The emission tax is twice as valuable as either the welfare-maximizing research subsidy or the welfare-maximizing mandate to use renewable resources.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mac.20200369
There are no comments for this item.