Ingmar Schumacher (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, Department of Economics - University of Trier) Pierre-André Jouvet (EconomiX - CNRS : UMR7166 - Université de Paris X - Nanterre)
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We assess the impact of the existence of a costly energy substitute (like wind, solar) for a non-renewable resource (like oil, coal) on the sustainability of consumption. The prospects for sustainability depend crucially on the costs of this substitute. If one can reduce the costs of the resource substitute via learning-by-using then we find that still this does not guarantee sustainability. Also, the poorer a country the less it will take the learning-by-using effect into account and the more likely it will be unsustainable.
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Paper provided by HAL in its series Working Papers with number
hal-00356044_v1.
Length: Date of creation: Jan 2009 Date of revision: Handle: RePEc:hal:wpaper:hal-00356044_v1
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