Mineral Resources for Renewable Energy: Optimal Timing of Energy Production
Mouez Fodha () and
No 2019.06, Working Papers from FAERE - French Association of Environmental and Resource Economists
The production of energy from renewable sources is much more intensive in minerals than that from fossil resources. The scarcity of certain minerals limits the potential for substituting renewable energy for scarce fossil resources. However, minerals can be recycled, while fossils cannot. We develop an intertemporal model to study the dynamics of the optimal energy mix in the presence of mineral intensive renewable energy and fossil energy. We analyze energy production when both mineral and fossil resources are scarce, but minerals are recyclable. We show that the greater the recycling rate of minerals, the more the energy mix should rely on renewable energy, and the sooner should investment in renewable capacity take place. We confirm these results even in the presence of other better known factors that affect the optimal schedule of resource use: growth in the productivity in the renewable sector, imperfect substitution between the two sources of energy, convex extraction costs for mineral resources and pollution from the use of fossil resources.
Keywords: Renewable and Non-Renewable Natural Resources; Mineral Resources; Recycling; Energy Transition (search for similar items in EconPapers)
JEL-codes: Q3 Q2 Q42 Q54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://faere.fr/pub/WorkingPapers/Fabre_Fodha_Ricci_FAERE.WP2019.06.pdf First version, 2019 (application/pdf)
Working Paper: Mineral resources for renewable energy: optimal timing of energy production (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fae:wpaper:2019.06
Access Statistics for this paper
More papers in Working Papers from FAERE - French Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Mireille Chiroleu-Assouline ().