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

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  • Pierre-André Jouvet

    (EconomiX, University of Paris Ouest - [-])

  • Ingmar Schumacher

    (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, 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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Bibliographic Info

Paper provided by HAL in its series Working Papers with number hal-00637960.

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Date of creation: 03 Nov 2011
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Handle: RePEc:hal:wpaper:hal-00637960

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Keywords: backstop technology; non-renewable resource; resource substitution; sustainability; learning-by-doing.;

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Cited by:
  1. Rick Van der Ploeg & Armon Rezai, 2013. "Abandoning Fossil Fuel: How fast and how much?," Economics Series Working Papers OxCarre Research Paper 12, University of Oxford, Department of Economics.

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