Breakthrough renewables and the green paradox
| Autor: | Frederick van der Ploeg |
|---|---|
| Přispěvatelé: | Tinbergen Institute, Spatial Economics |
| Jazyk: | angličtina |
| Rok vydání: | 2018 |
| Předmět: |
Hotelling-Regel
jel:D81 Hotelling principle exhaustible resources carbon-free substitute regime switch oil stock uncertainty hold-up problem green R&D Green Paradox Sunk Costs Natural resource economics 020209 energy 02 engineering and technology Green R&D oil stock uncertainty Discount points jel:H20 regime switch Regime shift ddc:330 0202 electrical engineering electronic engineering information engineering Economics Erschöpfbare Ressourcen Green paradox health care economics and organizations hotelling principle Q31 green R&D business.industry carbon-free substitute Q38 Break-Even-Analyse hotelling principle exhaustible resources carbon-free substitute regime switch oil stock uncertainty hold-up problem green R&D Green Paradox Investment (macroeconomics) Regenerative Energie exhaustible resources hold-up problem Renewable energy D81 Erdölförderung Oil depletion Erdölvorkommen Oil reserves jel:Q31 Green Paradox H20 Investitionsrisiko Oil price business Theorie Finance jel:Q38 |
| Zdroj: | Van Der Ploeg, F 2018, ' Breakthrough renewables and the green paradox ', FinanzArchiv, vol. 74, no. 1, pp. 52-70 . https://doi.org/10.1628/001522118X15101422148687 FinanzArchiv, 74(1), 52-70. JCB Mohr |
| ISSN: | 1614-0974 0015-2218 |
| DOI: | 10.1628/001522118X15101422148687 |
| Popis: | We show how a monopolistic owner of oil reserves responds to a carbon-free substitute becoming available at some uncertain point in the future if demand is isoelastic and variable extraction costs are zero but upfront exploration investment costs have to be made. Not the arrival of this substitute matters for efficiency, but the uncertainty about the timing of this substitute coming on stream. Before the carbon-free substitute comes on stream, oil reserves are depleted too rapidly; as soon as the substitute has arrived, the oil depletion rate drops and the oil price jumps up by a discrete amount. Subsidizing green R&D to speed up the introduction of breakthrough renewables leads to more rapid oil extraction before the breakthrough, but more oil is left in situ as exploration investment will be lower. The latter offsets the Green Paradox. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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