Journal article
Abandoning fossil fuel: How fast and how much
- 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.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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- Files:
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(Preview, Accepted manuscript, pdf, 1.2MB, Terms of use)
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- Publisher copy:
- 10.1111/manc.12189
Authors
- Publisher:
- Wiley
- Journal:
- Manchester School More from this journal
- Volume:
- 85
- Pages:
- e16-e44
- Publication date:
- 2017-04-10
- Acceptance date:
- 2017-03-06
- DOI:
- EISSN:
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1467-9957
- ISSN:
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1463-6786
- Pubs id:
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pubs:691377
- UUID:
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uuid:2f6ff216-febf-4dc0-8b73-dc4ff0460659
- Local pid:
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pubs:691377
- Source identifiers:
-
691377
- Deposit date:
-
2018-12-19
Terms of use
- Copyright holder:
- University of Manchester and John Wiley and Sons Ltd
- Copyright date:
- 2017
- Notes:
- © 2017 The University of Manchester and John Wiley and Sons Ltd. This is the accepted manuscript version of the article. The final version is available online from Wiley at: https://doi.org/10.1111/manc.12189
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