Research Seminar Environmental & Development Economics“Renewable energy implementation and fossil stock development“Inge van Den Bijgaart (University of Gothenburg)

9. Januar 2019

The Research Seminar Environmental & Development Economics welcomes Inge van Den Bijgaart (University of Gothenburg), who will present her work on

“Renewable energy implementation and fossil stock development”.

Place: Zentralbibliothek Recht, Rothenbaumchaussee 33 (Google Maps), Room Ro 33 BG 3/4
Hour: 12:15-13:45
We are looking forward to seeing you there!

Abstract
For the forseeable future, sustained energy supply will either require continued investment in exploring and developing new resource stocks, as well as investment in renewable energy technologies. We explore how the return to renewable energy technologies are affected by the presence of previously developed, but not yet extracted, resource stocks. We find that this return is decreasing in previously developed fossil resource stocks, and for sufficiently low stock levels, exceed the per unit cost of fossil resource use, defined as the sum of per unit exploration and use costs. Additionally, the return renewable energy technologies falls in the market penetration of such technologies, with a full phase-out of fossil only economically efficient if the marginal cost of renewable energy technologies falls below marginal fossil use cost.