Abandoning fossil fuel: how fast and how much
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...
| Main Authors: | , |
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| Format: | Working paper |
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University of Oxford
2013
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| _version_ | 1797078771659964416 |
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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 | 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. |
| first_indexed | 2024-03-07T00:36:30Z |
| format | Working paper |
| id | oxford-uuid:819a4b09-ee65-4c5d-86c9-8cbb944890d7 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T00:36:30Z |
| publishDate | 2013 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:819a4b09-ee65-4c5d-86c9-8cbb944890d72022-03-26T21:31:17ZAbandoning fossil fuel: how fast and how muchWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:819a4b09-ee65-4c5d-86c9-8cbb944890d7Bulk import via SwordSymplectic ElementsUniversity of Oxford2013Van der Ploeg, RRezai, AKeeping 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. |
| spellingShingle | Van der Ploeg, R Rezai, A Abandoning fossil fuel: how fast and how much |
| title | Abandoning fossil fuel: how fast and how much |
| title_full | Abandoning fossil fuel: how fast and how much |
| title_fullStr | Abandoning fossil fuel: how fast and how much |
| title_full_unstemmed | Abandoning fossil fuel: how fast and how much |
| title_short | Abandoning fossil fuel: how fast and how much |
| title_sort | abandoning fossil fuel how fast and how much |
| work_keys_str_mv | AT vanderploegr abandoningfossilfuelhowfastandhowmuch AT rezaia abandoningfossilfuelhowfastandhowmuch |