Journal article icon

Journal article

To build or not to build? capital stocks and climate policy∗

Abstract:

We investigate (i) the impact of emission reduction policy on investment in polluting infrastructure, such as coal-fired power stations and (ii) optimal subsidies for “clean” alternatives with “learning” spillovers. We build a general theoretical model, and embed it in a fully calibrated integrated assessment model. Because emission reduction policy reduces investments in polluting assets, short-term emission reductions are enhanced—our “irreversibility effect”. Thus, “stranded assets” in thi...

Expand abstract
Publication status:
Published
Peer review status:
Peer reviewed

Actions


Access Document


Files:
Publisher copy:
10.1016/j.jeem.2019.05.001

Authors


More by this author
Institution:
University of Oxford
Division:
SSD
Department:
Economics
Role:
Author
ORCID:
0000-0002-5353-1839
Publisher:
Elsevier Publisher's website
Journal:
Journal of Environmental Economics and Management Journal website
Volume:
100
Issue:
March 2020
Article number:
102235
Publication date:
2019-05-13
Acceptance date:
2019-05-03
DOI:
ISSN:
0095-0696
Language:
English
Keywords:
Pubs id:
pubs:997852
UUID:
uuid:c6e55ca9-bbc5-4728-b961-ad418a389268
Local pid:
pubs:997852
Source identifiers:
997852
Deposit date:
2019-05-13

Terms of use


Views and Downloads






If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP