Resource title

Bush meets hotelling: effects of improved renewable energy technology on greenhouse gas emissions

Resource image

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Resource description

Fossil fuels are non-renewable carbon resources, and the extraction path of these resources depends both on present and future demand. When this Hotelling feature is taken into consideration, the whole price path of carbon fuel will shift downwards as a response to the reduced cost of the renewable substitute. An implication of this is that greenhouse gas emissions in the near future may increase as a response to the reduced cost of the renewable substitute. If this is the case, increased climate costs may outweigh the benefits of reduced costs of a substitute, thus reducing overall social welfare.

Resource author

Michael Hoel

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26537

Resource license

Adapt according to the presented license agreement and reference the original author.