A review of the literature indicates a decreasing long-run elasticity of substitution between clean and dirty inputs as the share of clean inputs rises. In the power sector, which is the largest contributor to greenhouse gas emissions, integrating intermittent clean energy supply becomes...

This paper uses a benchmark climate model with endogenous technical change to consider the effects of three extensions on optimal policy under a clean transition. First, the movement of workers between non-energy and energy sectors lowers the cost of abatement by more than an order of magnitude,...

The elasticity of substitution between wind and solar inputs and dirty inputs in electricity is estimated to be 3 or more by fitting an aggregate production function to OECD panel data. Such a high elasticity is consistent with detailed electricity models which also predict that the...