The existing economics literature neglects the important role of capacity in the production of renewable energy. To … fiill this gap, we construct a model in which renewable energy production is tied to renewable energy capacity, which then … becomes a form of capital. This capacity capital can be increased through investment, which we interpret as arising from the …

Subsidies to renewable energy are costly and contentious. We estimate the reduction in prices that follows from the … analyzing storage and renewable energy in equilibrium, and provide an anatomy of a market dominated by such technologies …

energy sources for electricity production (RES-E). If an emission cap is the only policy target, an optimal mix consisting of … high and low carbon use of fossil fuels, deployment of RES-E, and energy savings can best be achieved by either setting a …

balanced to identify the welfare-maximising development path, the related investment strategies in the energy sector, and the …This paper analyses a set of new scenarios for energy markets in Europe to evaluate the consistency of economic … economically efficient and, at the same time, climate friendly, energy mix. Economic costs and environmental objectives are …

banking on carbon emissions, technological progress, and optimal investment decisions is quantified and the incentives that …

To decarbonize the power sector policy-makers need to commit to long-term credible rules for climate and energy policy … renewable energy sources. Using a dynamic partial equilibrium model of the power sector, we show that commitment to state …