Economics at your fingertips  

Sustainability of solar electricity: The role of endogenous resource substitution and cross-sectoral responses

Jevgenijs Steinbuks, Gaurav Satija and Fu Zhao

Resource and Energy Economics, 2017, vol. 49, issue C, 218-232

Abstract: This study seeks to understand how materials scarcity and competition from alternative uses affects the potential for widespread deployment of solar electricity in the long run, in light of related technology and policy uncertainties. Simulation results of a computable partial equilibrium model show that materials scarcities constrain the expansion of solar generation. Solar photovoltaics expand with higher energy demand, squeezing consumption in industries that compete for scarce minerals. Stringent climate policies hamper growth in intermittent solar photovoltaics backed by fossil fuel powered plants, which is not compensated by small increases in non-intermittent concentrated solar power capacity. These findings underscore the significance of developing cost-effective alternatives to critical materials and low-cost electricity storage for economically sustainable climate change mitigation.

Keywords: Endogenous resource substitution; Grade selection; Indium; Solar electricity (search for similar items in EconPapers)
JEL-codes: Q32 Q42 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

Access Statistics for this article

Resource and Energy Economics is currently edited by J. F. Shogren and S. Smulders

More articles in Resource and Energy Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-04-15
Handle: RePEc:eee:resene:v:49:y:2017:i:c:p:218-232