EconPapers    
Economics at your fingertips  
 

The Economic Impacts of Clean Power

Costas Arkolakis and Conor Walsh

No 33028, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper we assess the economic impacts of moving to a renewable-dominated grid in the US. We use projections of capital costs to develop price bounds on future wholesale power prices at the local geographic level. We then use a class of spatial general equilibrium models to estimate the effect on wages and output of prices falling below these bounds in the medium term. Power prices fall anywhere between 20% and 80%, depending on local solar resources, leading to an aggregate real wage gain of 2-3%. Over the longer term, we show how moving to clean power represents a qualitative change in the aggregate growth process, alleviating the “resource drag” that has slowed recent productivity growth in the US.

JEL-codes: E60 O4 Q40 Q42 Q43 Q57 R13 (search for similar items in EconPapers)
Date: 2024-10
New Economics Papers: this item is included in nep-ene, nep-env and nep-mac
Note: EEE EFG ITI
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.nber.org/papers/w33028.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
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:nbr:nberwo:33028

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w33028
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by (wpc@nber.org).

 
Page updated 2025-02-05
Handle: RePEc:nbr:nberwo:33028