000			01207nam a22001457a 4500
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100			_aLemoine, Derek _950301
245			_aInnovation-led transitions in energy supply
260			_aAmerican Economic Journal: Macroeconomics
300			_a16(1), Jan, 2024: p.29-65
520			_aGeneralizing 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
773			_aAmerican Economic Journal: Macroeconomics
906			_aENERGY RESOURCES
942			_cAR