Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/107812
Authors: 
van der Meijden, Gerard
Smulders, Sjak
Year of Publication: 
2014
Series/Report no.: 
Tinbergen Institute Discussion Paper 14-108/VIII
Abstract: 
The energy transition from fossil fuels to alternative energy sources has important consequences for technological change and resource extraction. We examine these consequences by incorporating a non-renewable resource and an alternative energy source in a market economy model of endogenous growth through expanding varieties. During the energy transition, technological progress is non-monotonic over time: it declines initially, starts increasing when the economy approaches the regime shift, and jumps down once the resource stock is exhausted. A moment of peak-oil does no longer necessarily occur, and simultaneous use of the resource and the alternative energy source will take place if the return to innovation becomes too low.
Subjects: 
Alternative energy sources
endogenous growth
energy transition
non-renewable resources
technological change
JEL: 
O30
Q32
Q42
Q56
Document Type: 
Working Paper

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