Stranded assets, the social cost of carbon, and directed technical change: macroeconomic dynamics of optimal climate policy
The tractable general equilibrium model developed by Golosov et al. (2014), GHKT for short, is modified to allow for stock-dependent fossil fuel extraction costs and partial exhaustion of fossil fuel reserves, a negative impact of global warming on growth, mean reversion in climate damages, steady l...
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| Format: | Working paper |
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University of Oxford
2016
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| _version_ | 1826262792381923328 |
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| author | Van der Ploeg, R Rezai, A |
| author_facet | Van der Ploeg, R Rezai, A |
| author_sort | Van der Ploeg, R |
| collection | OXFORD |
| description | The tractable general equilibrium model developed by Golosov et al. (2014), GHKT for short, is modified to allow for stock-dependent fossil fuel extraction costs and partial exhaustion of fossil fuel reserves, a negative impact of global warming on growth, mean reversion in climate damages, steady labour-augmenting technical progress, specific green technical progress driven by learning by doing, population growth, and a direct effect of the stock of atmospheric carbon on instantaneous welfare. We characterize the social optimum and derive simple rule for both the optimal carbon tax and the renewable energy subsidy, and characterize the optimal amount of untapped fossil fuel. |
| first_indexed | 2024-03-06T19:41:41Z |
| format | Working paper |
| id | oxford-uuid:20e5f9d2-4205-43f5-ad5c-e515984cf844 |
| institution | University of Oxford |
| last_indexed | 2024-03-06T19:41:41Z |
| publishDate | 2016 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:20e5f9d2-4205-43f5-ad5c-e515984cf8442022-03-26T11:30:11ZStranded assets, the social cost of carbon, and directed technical change: macroeconomic dynamics of optimal climate policyWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:20e5f9d2-4205-43f5-ad5c-e515984cf844Symplectic ElementsBulk import via SwordUniversity of Oxford2016Van der Ploeg, RRezai, AThe tractable general equilibrium model developed by Golosov et al. (2014), GHKT for short, is modified to allow for stock-dependent fossil fuel extraction costs and partial exhaustion of fossil fuel reserves, a negative impact of global warming on growth, mean reversion in climate damages, steady labour-augmenting technical progress, specific green technical progress driven by learning by doing, population growth, and a direct effect of the stock of atmospheric carbon on instantaneous welfare. We characterize the social optimum and derive simple rule for both the optimal carbon tax and the renewable energy subsidy, and characterize the optimal amount of untapped fossil fuel. |
| spellingShingle | Van der Ploeg, R Rezai, A Stranded assets, the social cost of carbon, and directed technical change: macroeconomic dynamics of optimal climate policy |
| title | Stranded assets, the social cost of carbon, and directed technical change: macroeconomic dynamics of optimal climate policy |
| title_full | Stranded assets, the social cost of carbon, and directed technical change: macroeconomic dynamics of optimal climate policy |
| title_fullStr | Stranded assets, the social cost of carbon, and directed technical change: macroeconomic dynamics of optimal climate policy |
| title_full_unstemmed | Stranded assets, the social cost of carbon, and directed technical change: macroeconomic dynamics of optimal climate policy |
| title_short | Stranded assets, the social cost of carbon, and directed technical change: macroeconomic dynamics of optimal climate policy |
| title_sort | stranded assets the social cost of carbon and directed technical change macroeconomic dynamics of optimal climate policy |
| work_keys_str_mv | AT vanderploegr strandedassetsthesocialcostofcarbonanddirectedtechnicalchangemacroeconomicdynamicsofoptimalclimatepolicy AT rezaia strandedassetsthesocialcostofcarbonanddirectedtechnicalchangemacroeconomicdynamicsofoptimalclimatepolicy |