The main objective of this paper is to identify fuel substitution potential by estimating potential price induced energy substitution and by considering available technological options. We consider the impacts of CO2 taxation on reduction of emissions until 2020, assuming CO2 neutrality of...

We fit CES and VES production functions to data from a numerical bottom-up optimization model of electricity supply with clean and dirty inputs. This approach allows for studying high shares of clean energy not observable today and for isolating mechanisms that impact the elasticity of...

The degree of substitutability between clean and dirty energy plays a centralrole in leading economic analyses of optimal environmental policy. Despitethe importance, assuming a constant and exogenous elasticity of substitutionhas been a dominant theoretical approach. We challenge this...