The fossil episode

John Hassler and Hans-Werner Sinn

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: Agriculture sector output (biocarbon) is a good substitute for oil in energy production but oil cannot be used as food. This one-way substitutability is analyzed in a dynamic general equilibrium model. It features three endogenous phases: a pure fossil, a mixed fossil and biocarbon and an absorbing biocarbon fuel only phase. In the latter two, the demand for biocarbon as fuel leads to increasing food prices. Depending on how easily capital and labor can reallocate, food prices increase by between 40% and 240%. The model is also used to analyze climate consequences of biocarbon fuel polices and of the shale revolution. (C) 2016 Elsevier B.V. All rights reserved.

Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Published in Journal of Monetary Economics 83(2016): pp. 14-26

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: The fossil episode (2016)
Working Paper: The Fossil Episode (2012)
Working Paper: The Fossile Episode (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:43482

Access Statistics for this paper

More papers in Munich Reprints in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().