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On the Dynamics of Competing Energy Sources AgEcon
Tsur, Yacov; Zemel, Amos.
We characterize the dynamics of energy markets in which energy is derived from polluting (fossil) and clean (solar) resources. The analysis is based on geometric optimal control considerations. An important feature of solar energy technologies is that their cost of supply is predominantly due to upfront investment in capital infrastructure (rather than to actual supply rate) and this feature has important implications for the market allocation outcome. In particular, it gives rise to a threshold behavior in that solar energy is adopted only when the price of fossil energy exceeds a certain threshold. Under this condition solar technologies will (eventually) dominate energy supply by driving fossil energy altogether out of the energy sector. A tax on fossil...
Tipo: Working or Discussion Paper Palavras-chave: Fossil and solar energy; Characteristic curves; Price thresholds; Environmental regulation; Environmental Economics and Policy; Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods; Resource /Energy Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/93127
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On the Dynamics of Competing Energy Sources AgEcon
Tsur, Yacov; Zemel, Amos.
We characterize the dynamics of energy markets in which energy is derived from polluting (fossil) and clean (solar) resources. The analysis is based on geometric optimal control considerations. An important feature of solar energy technologies is that their cost of supply is predominantly due to upfront investment in capital infrastructure (rather than to actual supply rate) and this feature has important implications for the market allocation outcome. In particular, it gives rise to a threshold behavior in that solar energy is adopted only when the price of fossil energy exceeds a certain threshold. Under this condition solar technologies will (eventually) dominate energy supply by driving fossil energy altogether out of the energy sector. A tax on fossil...
Tipo: Working or Discussion Paper Palavras-chave: Fossil and solar energy; Optimal processes; Characteristic curves; Price thresholds; Environmental regulation.; Resource /Energy Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/55265
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Market Structure and the Penetration of Alternative Energy Technologies AgEcon
Tsur, Yacov; Zemel, Amos.
Energy market prices ignore external effects, hence miss-allocate energy generation between (polluting) fossil fuels and (clean) solar technologies. Correcting the failure requires understanding the market allocation forces at hand. An important feature of solar energy is that its cost of supply is predominantly due to upfront investments in capital infrastructure (rather than to the actual supply rate) and this feature has far reaching implications for the market allocation outcome. Studying the market allocation process, we specify the conditions under which solar technologies penetrate the energy sector. The framework is then used to analyze policy regulation in the form of taxing fossil energy and subsidizing investments in solar energy. The first...
Tipo: Working or Discussion Paper Palavras-chave: Energy; Solar technologies; Fossil fuels; Price thresholds; Regulation; Environmental damage; Learning by doing; Resource /Energy Economics and Policy; Marketing; C61; Q42; Q58.
Ano: 2009 URL: http://purl.umn.edu/47174
Registros recuperados: 3
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