CHAPTER 6
Endogenous Substitution of EnergyResources: Theory and Applicationto the Energy Sector
THE ANALYSIS OF CLIMATE CHANGE MITIGATION POLICIES at the global or the national level ultimately depends on the assumed energy mix, in particular on the current and projected mix of carbon-intensive resources such as coal, oil, and natural gas as well as cleaner resources such as nuclear energy, hydroelectricity, and renewables. Several different modeling approaches are currently used by researchers to project carbon emissions.
Most economic analyses of climate change, especially ones that focus on aggregate fossil fuel use, tend to assume a fixed input output relationship between aggregate resource use and Gross Domestic Product ...
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