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The Rise and Fall of Bioenergy

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  • Michael Olaf Hoel

Abstract

If bioenergy has a less negative impact on the climate than fossil energy, it may be optimal to have a significant increase in the use of bioenergy over time. Due to the difference in the way the climate is affected by the two types of energy, the future time path of the use of bioenergy may be non-monotonic: It may be optimal to first have an increase in its use, and later a reduction. Optimal taxes and subsidies are derived both for the first-best case and for the case of a constraint on the size of the fossil tax.

Suggested Citation

  • Michael Olaf Hoel, 2018. "The Rise and Fall of Bioenergy," CESifo Working Paper Series 6971, CESifo.
    • Handle: RePEc:ces:ceswps:_6971
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    References listed on IDEAS

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    More about this item

    Keywords

    bioenergy; renewable energy; climate policy; carbon tax; second best; subsidies;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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