Technical change during the energy transition

G.C. van der Meijden, Sjak Smulders

Research output: Contribution to journalArticleScientificpeer-review

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 lace if the return to innovation becomes too low. Subsidies to research and development (R&D) and to renewables production speed up the energy transition, whereas a tax on fossil fuels postpones the switch to renewable energy.
Original languageEnglish
Pages (from-to)805-836
JournalMacroeconomic Dynamics
Volume22
Issue number4
DOIs
Publication statusPublished - Jun 2018

Fingerprint

Energy sources
Alternative energy
Technical change
Energy
Resources
Fossil fuels
Technological progress
Non-renewable resources
Lace
Endogenous growth
Peak oil
Tax
Resource extraction
Technological change
Renewable energy
Subsidies
Regime shift
Innovation
Market economy
Jump

Keywords

  • alternative energy sources
  • endogenous growth
  • energy transition
  • nonrenewable resources
  • technological change

Cite this

van der Meijden, G.C. ; Smulders, Sjak. / Technical change during the energy transition. In: Macroeconomic Dynamics. 2018 ; Vol. 22, No. 4. pp. 805-836.
@article{6608f12fc87845aab4666e8d31b899bd,
title = "Technical change during the energy transition",
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 lace if the return to innovation becomes too low. Subsidies to research and development (R&D) and to renewables production speed up the energy transition, whereas a tax on fossil fuels postpones the switch to renewable energy.",
keywords = "alternative energy sources, endogenous growth, energy transition, nonrenewable resources, technological change",
author = "{van der Meijden}, G.C. and Sjak Smulders",
year = "2018",
month = "6",
doi = "10.1017/S1365100516000419",
language = "English",
volume = "22",
pages = "805--836",
journal = "Macroeconomic Dynamics",
issn = "1365-1005",
publisher = "Cambridge University Press",
number = "4",

}

Technical change during the energy transition. / van der Meijden, G.C.; Smulders, Sjak.

In: Macroeconomic Dynamics, Vol. 22, No. 4, 06.2018, p. 805-836.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Technical change during the energy transition

AU - van der Meijden, G.C.

AU - Smulders, Sjak

PY - 2018/6

Y1 - 2018/6

N2 - 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 lace if the return to innovation becomes too low. Subsidies to research and development (R&D) and to renewables production speed up the energy transition, whereas a tax on fossil fuels postpones the switch to renewable energy.

AB - 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 lace if the return to innovation becomes too low. Subsidies to research and development (R&D) and to renewables production speed up the energy transition, whereas a tax on fossil fuels postpones the switch to renewable energy.

KW - alternative energy sources

KW - endogenous growth

KW - energy transition

KW - nonrenewable resources

KW - technological change

U2 - 10.1017/S1365100516000419

DO - 10.1017/S1365100516000419

M3 - Article

VL - 22

SP - 805

EP - 836

JO - Macroeconomic Dynamics

JF - Macroeconomic Dynamics

SN - 1365-1005

IS - 4

ER -