They also show that an increase in the recycling rate of minerals results in an increase of the share of renewable energy and an acceleration of the investment in renewable energy capacity. [...] (2020) and given the interest in simulating the model with real life data, we have adopted the assumption in GHKT regarding the imperfect substitutability of the energy sources, as well as the absence of a backstop technology. [...] While a backstop technology is likely to mainly influence the long-run outcome of the economy, the substitutability is likely to play an essential role both in the short-run and long-run effects of the scarcity of CRM. [...] Indeed, our simulations reveal that initial extraction of oil is a decreasing function of the initial stock of CRM whereas the opposite is true for coal with the overall impact of a slower accumulation of carbon in the atmosphere. [...] 2 The model We first offer an overview of the benchmark framework of GHKT where the energy transition is examined in the absence of mineral constraints.
Authors
- Pages
- 51
- Published in
- Canada
