We analyze the optimal accumulation of renewable energy (backstop) generating capacity in a capital-energy economy with exhaustible fossil fuels. The analysis rests upon graphical illustrations of optimal control considerations. Due to the exhaustibility of fossil fuels the relative...

Under which conditions unilateral tightening of climate policy causes a weak or strong green paradox or even decreases social welfare has recently been studied by Hoel (2011). Hoel assumes that the costs of extracting fossil fuel are linear in output. We extend his model by allowing for...

We analyze the optimal accumulation of renewable energy (backstop) generating capacity in a capital-energy economy with exhaustible fossil fuels. The analysis rests upon graphical illustrations of optimal control considerations. Due to the exhaustibility of fossil fuels the relative...

Under which conditions unilateral tightening of climate policy causes a weak or strong green paradox or even decreases social welfare has recently been studied by Hoel (2011). Hoel assumes that the costs of extracting fossil fuel are linear in output. We extend his model by allowing for...

Under which conditions unilateral tightening of climate policy causes a weak or strong green paradox or even decreases social welfare has recently been studied by Hoel (2011). Hoel assumes that the costs of extracting fossil fuel are linear in output. We extend his model by allowing for...