 A strong argument for using non-commodities to generate electricityKatarina Tatiana Marques Santiago, Fernando Menezes Campello de Souza and Diogo Bezerra () Energy Economics, 2014, vol. 43, issue C, 34-40 Abstract: An optimal control approach towards generating electricity is used to analyze the trade-off between using of primary sources which are regarded as commodities, such as fossil fuels, biomass and water to generate electricity, and exploiting these sources for their other economic uses (for example, in the petrochemical industry, in the production of fuels, in agriculture, in steelmaking, and so forth). In order to do so, a dynamic model is presented which establishes relationships between economic growth, the fossil fuel, water and biomass sectors, and energy policies, based on the application of the Pontryagin Maximum Principle. Among other results, the analysis establishes that, under the optimal path, the price of commodities for non-energy uses should be twice the price of the energy assets. This indicates that sources which are not commodities such as solar energy, wind energy, and geothermal energy, should be used to generate electricity. Keywords: Energy policy; Exhaustible resources; Commodities; Optimal economic growth; Uses of fossil fuels (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:43:y:2014:i:c:p:34-40 DOI: 10.1016/j.eneco.2014.01.011 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.