Erschienen:
Cambridge, Mass: National Bureau of Economic Research, August 2016
Erschienen in:NBER working paper series ; no. w22536
Umfang:
1 Online-Ressource
Sprache:
Englisch
DOI:
10.3386/w22536
Identifikator:
Reproduktionsnotiz:
Hardcopy version available to institutional subscribers
Entstehung:
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Beschreibung:
Addressing climate change requires transitioning away from coal-based energy. Recent structural change models demonstrate that temporary interventions could induce permanent fuel switching when transitional dynamics exhibit strong path dependence. Exploiting changes in local coal supply driven by subsurface coal accessibility, I find that transitory shocks have strengthening effects on the fuel composition of two subsequent generations of U.S. electricity capital. To facilitate a structural interpretation, I develop a model which informs: tests that find scale effects as the relevant mechanism; recovery of the elasticity of substitution between coal and non-coal electricity; and simulations of future carbon emissions following temporary interventions