• Graduate program
    • Why Tinbergen Institute?
    • Program Structure
    • Courses
    • Course Registration
    • Facilities
    • Admissions
    • Recent PhD Placements
  • Research
  • News
  • Events
    • Summer School
      • Behavioral Macro and Complexity
      • Econometrics and Data Science Methods for Business and Economics and Finance
      • Inequalities in Health and Healthcare
      • Introduction in Genome-Wide Data Analysis
      • Research on Productivity, Trade, and Growth
      • Summer School Business Data Science Program
    • Events Calendar
    • Tinbergen Institute Lectures
    • Annual Tinbergen Institute Conference
    • Events Archive
  • Summer School
  • Alumni
  • Times
Home | Events Archive | Renewable Energy Implementation and Fossil Stock Development

Renewable Energy Implementation and Fossil Stock Development

  • Series
  • Speaker(s)
    Inge van den Bijgaart (University of Gothenburg, Sweden)
  • Field
    Spatial Economics
  • Location
    Tinbergen Institute, room 1.01
  • Date and time

    April 17, 2019
    12:15 - 13:15

For the forseeable future, sustained energy supply will require continued investment in exploring and developing new fossil reserves, and/or investment in renewable energy technologies. We study the anticipated expansion of renewable supply against the backdrop of ongoing and potential development of new fossil reserves. We characterize incentives to further investment in renewable energy capacity and find that these decline in previously developed fossil resource stocks.
For sufficiently low renewable energy costs, fossil energy will be fully replaced by renewable energy. Such a phase-out strategy additionally features the abandonment of previously developed fossil reserves only if renewable energy meets a lower cost threshold equal to fossil use cost. Finally we characterize optimal investment subsidies in the absence of Pigouvian carbon taxation and establish that subsidies are weakly increasing in developed reserves.

Joint work with Mauricio Rodriguez