Clean energy and international oil
Oil has been the world's dominant fuel for more than 50 years. Substitution of oil for power generation and heating has progressed since the 1970s, but substitution of oil in transport remains elusive. This paper examines the progress of clean energy and compares the unfolding co-evolution of technologies, markets and institutions with what we know about substitution of oil and technological paradigm shifts. While the rhetoric in favour of clean energy is strong, technologies, policies, and supportive infrastructure investments are still in a formative stage. The transformative process will evolve over the next 10--20 years and change irreversibly the demand dynamics for oil. Although decline in the demand for oil is not imminent, the impact of the clean energy transition on international oil is evident, even now. High oil prices accelerate commitment, policies, and market prospects for clean energy options and speed up the market-readiness of substitutes for oil. While 20 years appears a long time for the development and scale-up of alternatives to oil, it is a short period in the context of the required paradigm shift. For international oil, it is well within the time frame for resource rent optimization, strategic planning, and investment decisions. High-cost resource developers need to be aware. Copyright 2011, Oxford University Press.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Krichene, Noureddine, 2002. "World crude oil and natural gas: a demand and supply model," Energy Economics, Elsevier, vol. 24(6), pages 557-576, November.
- Paul Segal, 2011. "Oil price shocks and the macroeconomy," Oxford Review of Economic Policy, Oxford University Press, vol. 27(1), pages 169-185, Spring.
- John Livernois, 2009. "On the Empirical Significance of the Hotelling Rule," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 3(1), pages 22-41, Winter.
- Giovanni Dosi & Marco Grazzi, 2006. "Energy, Development, and the Environment: An Appraisal Three Decades After the "Limits to Growth" Debate," LEM Papers Series 2006/15, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Geels, Frank W., 2004. "From sectoral systems of innovation to socio-technical systems: Insights about dynamics and change from sociology and institutional theory," Research Policy, Elsevier, vol. 33(6-7), pages 897-920, September.
- Vanessa OLTRA (GREThA UMR CNRS 5113), 2008. "Environmental innovation and industrial dynamics: the contributions of evolutionary economics," Cahiers du GREThA 2008-28, Groupe de Recherche en Economie Théorique et Appliquée.
- Daniel J.A. Johansson & Christian Azar & Kristian Lindgren & Tobias A. Persson, 2009. "OPEC Strategies and Oil Rent in a Climate Conscious World," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 23-50.
- Weyant, John P., 2011. "Accelerating the development and diffusion of new energy technologies: Beyond the "valley of death"," Energy Economics, Elsevier, vol. 33(4), pages 674-682, July.
- Askari, Hossein & Krichene, Noureddine, 2010. "An oil demand and supply model incorporating monetary policy," Energy, Elsevier, vol. 35(5), pages 2013-2021.
- Dieter Helm, 2010. "Government failure, rent-seeking, and capture: the design of climate change policy," Oxford Review of Economic Policy, Oxford University Press, vol. 26(2), pages 182-196, Summer.
- Nill, Jan & Kemp, Ren, 2009. "Evolutionary approaches for sustainable innovation policies: From niche to paradigm?," Research Policy, Elsevier, vol. 38(4), pages 668-680, May.
- Mowery, David C. & Nelson, Richard R. & Martin, Ben R., 2010. "Technology policy and global warming: Why new policy models are needed (or why putting new wine in old bottles won't work)," Research Policy, Elsevier, vol. 39(8), pages 1011-1023, October.
- Geoffrey Heal, 2009. "The Economics of Renewable Energy," NBER Working Papers 15081, National Bureau of Economic Research, Inc.
- Gately, Dermot, 1993. "Oil demand in the US and Japan: why the demand reductions caused by the price increases of the 1970's won't be reversed by the price declines of the 1980's," Japan and the World Economy, Elsevier, vol. 5(4), pages 295-320, December.
- Herzog, Howard J., 2011. "Scaling up carbon dioxide capture and storage: From megatons to gigatons," Energy Economics, Elsevier, vol. 33(4), pages 597-604, July.
When requesting a correction, please mention this item's handle: RePEc:oup:oxford:v:27:y:2011:i:1:p:92-116. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.