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We study how environmental regulation in the form of a cap on aggregate emissions from a fossil fuel (e.g., coal) interacts with the arrival of a clean substitute (e.g., solar energy). The cost of the substitute is assumed to decrease with cumulative use because of learning-by-doing. We show...
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<np pagenum="002"/>In this paper, a partial trade equilibrium model is developed to explore the impacts of US energy policies on the use and trade of first-generation biofuels (ethanol) and second-generation biofuels (ligno-cellulosic ethanol) in the United-States and Brazil. In addition, we investigate their...
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Biofuels have received a lot of attention as a substitute for gasoline in transportation. They have also been blamed for recent increases in food prices. Both the United States and the European Union have adopted mandatory blending policies that require a sharp increase in the use of biofuels....
Persistent link: https://www.econbiz.de/10008764901
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Biofuels have received a lot of attention as a substitute for gasoline in transportation. They have also been blamed for recent increases in food prices. Both the United States and the European Union have adopted mandatory blending policies that require a sharp increase in the use of biofuels....
Persistent link: https://www.econbiz.de/10008787500
In this paper, we show that the potential for endogenous technological change in alternative energy sources may alter the behaviour of resource-owning firms. When technological progress in an alternative energy source can occur through learning-by-doing, resource owners face competing incentives...
Persistent link: https://www.econbiz.de/10009023513
Regulation of environmental externalities like global warming from the burning of fossil fuels (e.g., coal and oil) is often done by capping both emission flows and stocks. For example, the European Union and states in the Northeastern United States have introduced caps on flows of carbon...
Persistent link: https://www.econbiz.de/10008465256