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Learning-by-doing and the Costs of a Backstop for Energy Transition and Sustainability

Author

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  • Pierre-André Jouvet

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Ingmar Schumacher

    (X-DEP-ECO - Département d'Économie de l'École Polytechnique - X - École polytechnique, Banque Centrale du Luxembourg)

Abstract

We assess the impact of being able to substitute an unlimited but costly energy substitute (like wind, solar) for a non-renewable resource (like oil, coal) in a model of sustainable growth. The prospects for sustainability on the optimal path depend crucially on the costs of this substitute.Furthermore, the poorer a country, measured in terms of capital stock at a given point in time, the later it should switch to the renewable substitute, and the more likely it will be unsustainable. Taking learning-by-doing in account, we find that this leads to an earlier switching time but does not guarantee sustainability.

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  • Pierre-André Jouvet & Ingmar Schumacher, 2011. "Learning-by-doing and the Costs of a Backstop for Energy Transition and Sustainability," Working Papers hal-00637960, HAL.
    • Handle: RePEc:hal:wpaper:hal-00637960
    Note: View the original document on HAL open archive server: https://hal.science/hal-00637960
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    Cited by:

    1. Armon Rezai & Frederick Van Der Ploeg, 2017. "Abandoning Fossil Fuel: How Fast and How Much," Manchester School, University of Manchester, vol. 85(S2), pages 16-44, December.
    2. Armon Rezai & Frederick Ploeg, 2017. "Second-Best Renewable Subsidies to De-carbonize the Economy: Commitment and the Green Paradox," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(3), pages 409-434, March.
    3. Jean-François Fagnart & Marc Germain & Benjamin Peeters, 2020. "Can the Energy Transition Be Smooth? A General Equilibrium Approach to the EROEI," Sustainability, MDPI, vol. 12(3), pages 1-29, February.
    4. Ekaterina Azarova & Hannah Jun, 2021. "Investigating Determinants of International Clean Energy Investments in Emerging Markets," Sustainability, MDPI, vol. 13(21), pages 1-15, October.
    5. Jean-François Fagnart & Marc Germain, 2015. "Can the Energy Transition Be Smooth?," Working Papers 2015.04, FAERE - French Association of Environmental and Resource Economists.
    6. Victor Court & Pierre-André Jouvet & Frédéric Lantz, 2018. "Long-term endogenous economic growth and energy transitions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    7. Charles F. Mason & Rémi Morin Chassé, 2018. "The Transition to Renewable Energy," CESifo Working Paper Series 6889, CESifo.

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    More about this item

    Keywords

    backstop technology; non-renewable resource; resource substitution; sustainability; learning-by-doing.; learning-by-doing;
    All these keywords.

    JEL classification:

    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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