Hoel, Michael; Jensen, Svenn - In: Resource and Energy Economics 34 (2012) 4, pp. 680-695
We use a two-period model to investigate intertemporal effects of cost reductions in climate change mitigation technologies for the power sector. The effect of cost reductions for CCS depends on how carbon taxes are set. If there is no carbon tax in period 1, but an optimally set carbon tax in...