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Energy Substitutions, Climate change and Carbon sinks

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Listed author(s):
  • LAFFORGUE Gilles

    (LERNA, TSE)

  • MAGNE Bertrand
  • MOREAUX Michel

    (LERNA, TSE)

Abstract

We determine the optimal exploitation time-paths of two energy resources, one being depletable and polluting, namely a fossil fuel, the other being renewable and clean. These optimal paths are considered along with the two following features. First, the cumulative atmospheric pollution stock is set not to exceed some critical threshold and second, the polluting emissions produced by the use of fossil fuel can be reduced at the source and stockpiled in several carbon sinks of limited capacity. We show that, if the renewable resource flow is abundant, the optimal path requires that sequestration is implemented only once the ceiling is reached. Moreover, the reservoirs should be completely filled by increasing order of their respective sequestration costs.

(This abstract was borrowed from another version of this item.)

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File URL: http://www2.toulouse.inra.fr/lerna/travaux/cahiers2007/07.01.222.pdf
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Paper provided by LERNA, University of Toulouse in its series LERNA Working Papers with number 07.01.222.

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Date of creation: Aug 2007
Handle: RePEc:ler:wpaper:07.01.222
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  6. Amigues, Jean-Pierre & Favard, Pascal & Gaudet, Gerard & Moreaux, Michel, 1998. "On the Optimal Order of Natural Resource Use When the Capacity of the Inexhaustible Substitute Is Limited," Journal of Economic Theory, Elsevier, vol. 80(1), pages 153-170, May.
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  12. Favard, Pascal, 2002. "Does productive capital affect the order of resource exploitation?," Journal of Economic Dynamics and Control, Elsevier, vol. 26(6), pages 911-918, June.
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