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This paper explores cost-effective low-carbon R&D and capital investment portfolios for the electricity generation sector through 2060. We present a novel method for long-term planning by combining an economic model of endogenous non-linear technical change and a generation capacity planning...
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spending at existing plants. However, pollution abatement investment is significantly related to productive (non-abatement …) investment. Plants with high abatement investment spend less on productive capital. The magnitude of the impact corresponds to … nearly complete crowding out of productive investment by abatement investment. Examining investment timing, we find that …
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