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Learning-by-doing and the costs of a backstop for energy transition and sustainability

  • Jouvet, Pierre-André
  • Schumacher, Ingmar

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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Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 73 (2012)
Issue (Month): C ()
Pages: 122-132

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Handle: RePEc:eee:ecolec:v:73:y:2012:i:c:p:122-132
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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