On the transition from nonrenewable energy to renewable energy

Yacoub Bahini and Cuong Le Van ()
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Cuong Le Van: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, VCREME - Van Xuan Center of Research in Economics, Management and Environment, IPAG - Business School

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Abstract: In this paper we use the CMM model (Chakravorty et al., 2006) in discrete time and obtain more results concerning the exhaustion time of Non-Renewable Resource (NRE), the dynamic regimes of energy prices, of the stocks of pollution. We show that NRE is exhausted in finite time and is directly influenced by the initial stock of NRE and the costs of NRE and RE. Higher is the initial stock of NRE, far is the time of exhaustion of NRE. Higher is the cost of NRE (resp. the difference of unit costs between RE and NRE), far is the time of exhaustion of NRE. Furthermore, we show that the abatement intervenes, when necessary, not more than two periods. We also show that, when the unit extraction cost of RE is not very high, the stocks of emissions will never be binding if and only if, the initial stock of NRE is less than a critical value.

Keywords: dynamic optimization; natural resources; energetic transition; environment (search for similar items in EconPapers)
Date: 2015-05
New Economics Papers: this item is included in nep-ene, nep-env, nep-reg and nep-res
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01167042v1
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Published in 2015

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Related works:
Working Paper: On the transition from nonrenewable energy to renewable energy (2015)
Working Paper: On the transition from nonrenewable energy to renewable energy (2015)
Working Paper: On the transition from nonrenewable energy to renewable energy (2015)
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