This paper deals with the problem of tackling the adverse effect of output growth on environmental quality. For this purpose we use an intermediate sector that builds "putty-practically-clay" capital consisting of an amalgam of energy and raw capital used for final goods production. The...

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...

Investments in renewable energy play a key role in achieving global climate goals. Favourable policies have attracted a lot of private capital to solar and wind technologies from a wide range of investors in the last decade. In the meantime, the costs of these technologies have declined...