Quotation Rezai, Armon, van der Ploeg, Frederick. 2017. Abandoning Fossil Fuel: How much and how fast? The Manchester School, 85, 16-44.


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Abstract

Keeping climate change within limits requires that most of the available carbon-based energy sources need to be abandoned underground. We study how fast and how much this transition to carbon-free energy needs to occur within a welfare-maximizing Ramsey growth model of climate change. Our model also addresses the market failure in the development of clean energy which leads to an under-provision of renewable energy, delays the transition time to the carbon-free era and reduces the amount of dirty fuels locked up in situ. Optimal policy requires an aggressive renewables subsidy in the near term and a gradually rising carbon tax which falls in long run. We also study the transition timing and the performance of recently proposed policy rules for the carbon tax.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal The Manchester School
Citation Index SSCI
Language English
Title Abandoning Fossil Fuel: How much and how fast?
Volume 85
Year 2017
Page from 16
Page to 44
Reviewed? Y
DOI http://dx.doi.org/10.1111/manc.12189
Open Access N

Associations

People
Rezai, Armon (Details)
External
van der Ploeg, Frederick (Oxford University, United Kingdom)
Organization
Institute for Ecological Economics IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
2928 Environmental economics (Details)
5325 Political economics (Details)
5334 Political economic policy (Details)
5335 Political economic theory (Details)
5341 Economic policy (Details)
5353 Environmental economics (Details)
5924 Environmental economics (Details)
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