The degree of substitutability between clean and dirty energy plays a central role in leading economic analyses of optimal environmental policy. Despite the importance, a constant and exogenous elasticity of substitution has been a dominant theoretical approach. We challenge this assumption by...

Iran economy has high energy intensity and CO2 emission compared to other peer countries. This study adopts the Logarithmic Mean Divisia Index (LMDI-I) method to decompose the total energy intensity changes of the Iranian economy by considering inter-fuel substitution impacts of the economic...

Pakistan is presently in the phase of industrialization and urbanization, which is characterized by rigid energy demand and supply. This plays an imperative role in the economy, but the carbon dioxide emissions (CO2Es) from fossil fuels increases. As per research objectives, the current study...

This article develops a factual analysis of the renewable energy transition in Germany. Startingfrom the German decision to phase-out from nuclear power, an economic discussion is conducted on the specificities of this energy shift and its associated economic and environmental constraints. In...

This paper adds a fresh angle to the on-going debate on the potential negative employment effect of environmental policy by bringing to the fore a key factor that directly regulates its magnitude: the elasticity of substitution between labor and energy. Using firm-level data from the French...

When analyzing potential ways to counter climate change, standard models of green growth abstract from investment in substitutability between “clean” and “dirty” energy inputs. Instead, they rely on the assumption that efficiency with respect to fossil fuels can be increased perpetually....

We fit CES and VES production functions to data from a numerical bottom-up optimization model of electricity supply with clean and dirty inputs. This approach allows for studying high shares of clean energy not observable today and for isolating mechanisms that impact the elasticity of...

The study aims to investigate the environmental effects of mix energies on the three most polluted countries of ASEAN economies. The study uses the data of the Philippines, Vietnam, and Thailand over the period of 1995-2017 as gathered from the World Bank and Global Economy. The study uses Brush...

Power systems networks are traditionally structured and engineered to effectively accommodate the effects of uncertainty and variability as regards energy demand and availability of resources. In order to transform the present carbon-intensive electricity generation system to one driven largely...

Steel is the inevitable material for the infrastructure and has the strategic importance for the growth of the country. Iron and steel making industry is one of the most energy-intensive industries, with 5% of the worlds total energy consumption. Therefore, it is required to develop suitable and...

This study explores how energy tax influences energy R&D investments, which further affect economic welfare, carbon emissions, and climate change under various emission abatement policies. Energy tax, as a market-based instrument, aims to adjust the energy R&D investments to the optimal level....

We fit CES and VES production functions to data from a numerical bottom-up optimization model of electricity supply with clean and dirty inputs. This approach allows for studying high shares of clean energy not observable today and for isolating mechanisms that impact the elasticity of...

When analyzing potential ways to counter climate change, standard models of green growth abstract from investment in substitutability between "clean" and "dirty" energy inputs. Instead, they rely on the assumption that efficiency with respect to fossil fuels can be increased perpetually....

The elasticity of substitution between clean and dirty energy and the direction of technological change are central parameters in discussing one of the most challenging questions today, climate change. Despite their importance, there are few studies that empirically estimate these key...

Due to low natural gas prices and the environmental advantages of natural gas combined cycle (NGCC) compared to coal, NGCC is replacing coal generators as the inframarginal providers of electricity. However, on average, NGCCs are running only 54 percent of the time. Utilizing excess NGCC...

Energy subsidies account for about 7% of Ecuador's yearly public spending, or two thirds of the fiscal deficit. Removing these subsidies would yield clear economic and environmental benefits and help implement climate targets set in the Paris Agreement. However, expected adverse effects on...

This paper provides novel evidence on the impact of changes in energy prices on manufacturing performance in two large developing economies -- Indonesia and Mexico. It finds that unlike increases in electricity prices, which harm plants' performance, fuel price hikes result in higher...

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,...

Solar photovoltaic (PV) technology represents a promising method to prevent dangerous global climate change, however full solar penetration demands substantial surface areas, possibly encroaching on arable land. To avoid repeating the mistakes of previous attempts to convert agricultural land to...

Energy subsidies account for about 7% of Ecuador’s yearly public spending, or two thirds of the fiscal deficit. Removing these subsidies would yield clear economic and environmental benefits and help implement climate targets set in the Paris Agreement. However, expected adverse effects on...

Energy subsidies account for about 7% of Ecuador's yearly public spending, or two thirds of the fiscal deficit. Removing these subsidies would yield clear economic and environmental benefits and help implement climate targets set in the Paris Agreement. However, expected adverse effects on...

Despite regulation efforts, CO2 emissions from European road transport have continued to rise. Increased use of electricity offers a promising decarbonization option, both to fuel electric vehicles and run power-to-x systems producing synthetic fuels. To understand the economic implications of...

Vietnam’s economy is one of the most energy-intensive economies in the world, facilitated by long-standing government policies indirectly subsidizing energy prices through various state-owned enterprises in the energy sector. A consequence of this is that firms are using too much energy in...

The electrification of road transport in the ASEAN appears to decrease the level of final energy consumption in the road transport sector in 2040. The level of primary energy consumption, however, may not decrease unless countries adopt aggressive policies toward the integration of renewable...

The Great East Japan Earthquake (GEJE) and Fukushima nuclear disaster that occurred in 2011 gave a sharp reminder to Japan's energy security to reconsider the reduction of nuclear power dependence with a better energy mix. We use a recursive CGE model based on Japan's renewable energy...

We investigate interfuel substitution in the United States using the minflex Laurent demand system and a century of data (from 1919 to 2012). We relax the assumption of constant parameters in the demand system, and also relax the homoskedasticity assumption, instead assuming that the covariance...

Renewable electricity is the main instrument used for decarbonizing the electricity sector. This paper aims at estimating the emission displacement effect of renewables in Germany for 2017. The results suggest that the marginal offsetting effect is positive. Wind electricity offsets more...

Electrification of transportation and buildings to reduce greenhouse gas (GHG) emissions requires massive switching from natural gas and refined petroleum products. All three end-use energy sources are mispriced due in part to the unpriced pollution they emit. Natural gas and electricity...

The transition towards low-carbon economies requires massive investments into renewable energies, which are commonly supported through regulatory frameworks. Yet, governments can have incentives - and the ability - to deviate from previously-announced support once those investments have been...

In growth theory, a greater-than-one elasticity of substitution between clean and dirty energy is among key necessary conditions for long-run green economic growth. Using parametric specifications, Papageorgiou et al. (2017) provide first estimates of this fundamentally important inter-energy...