Effects of fossil fuel prices on the transition to a low-carbon economy
Franco Ruzzenenti Franco Ruzzenenti and
Andreas A. Papandreou
Additional contact information
Franco Ruzzenenti Franco Ruzzenenti: University of Siena
Andreas A. Papandreou: National and Kapodistrian University of Athens
Working papers from Financialisation, Economy, Society & Sustainable Development (FESSUD) Project
The purpose of this paper is to shed light on the role that fossil fuel prices have in bringing about a transition to a low carbon economy. This is a very broad, complex and potentially ambiguous question. It requires a good understanding of the factors that can shape long run fossil fuel price trends as well as an understanding of how energy transitions take place, and more specifically how an unprecedented policy-driven global energy transition can be orchestrated. The paper starts with the theory and historical evidence of resource and energy prices with a key message that over the very long run prices of energy services have shown a steady decline. The paper explains why a focus on oil is warranted, discusses the key determinants of oil prices and presents a brief history of recent oil price patterns. It also considers the connection of oil prices with recessions, what the future might bring for fossil fuel prices, and the potential implications of an end to cheap oil for the transition to a low-carbon economy. Finally, it looks into some facets of the interaction between fossil fuel prices and climate policy with a special focus on the role of carbon prices and how these must ultimately be part of a much broader strategy for an effective transition to a low carbon economy that is robust to alternative oil price trajectories.
Keywords: oil prices; energy prices; energy policy; climate change policy; carbon prices; green paradox; socio-economic transitions; low-carbon economy (search for similar items in EconPapers)
JEL-codes: L98 O13 Q32 Q38 Q41 Q43 Q47 Q48 Q54 (search for similar items in EconPapers)
Pages: 76 pages
New Economics Papers: this item is included in nep-ene, nep-env and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://fessud.eu/wp-content/uploads/2015/03/Papand ... king-paper-89.v2.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to fessud.eu:80 (No such host is known. )
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:fes:wpaper:wpaper89
Access Statistics for this paper
More papers in Working papers from Financialisation, Economy, Society & Sustainable Development (FESSUD) Project FESSUD Co-ordinator (Malcolm Sawyer) Leeds University Business School Maurice Keyworth Buidling Leeds LS2 9JT.
Bibliographic data for series maintained by Helen Evans ().