Converting Primary Resources Into Useful Energy: The Pollution Ceiling Efficiency Paradox

Amigues, Jean-Pierre and Moreaux, Michel (2016) Converting Primary Resources Into Useful Energy: The Pollution Ceiling Efficiency Paradox. TSE Working Paper, n. 16-624, Toulouse

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Official URL: http://tse-fr.eu/pub/30209

Abstract

We study an economy producing energy services from a polluting fossil fuel and a carbon free renewable resource under a constraint on the admissible atmospheric carbon concentration, equivalently under a constraint on the admissible temperature. The transformation rates of natural primary resources energy into useful energy are costly endogenous variables. Choosing higher efficiency rates requires to bring into operation more sophisticated energy transformation devices, that is more costly ones. We show that, independently of technical progress, along a perfect foresight equilibrium path which is Pareto optimal, the transformation rate of any exploited resource should increase throughout time, excepted within the period during which the carbon constraint is binding, a phenomenon we call the ’ceiling paradox’.

Item Type: Monograph (Working Paper)
Language: English
Date: February 2016
Place of Publication: Toulouse
Uncontrolled Keywords: Energy efficiency, carbon pollution, non-renewable resources, renewable resources
JEL codes: Q00 - General
Q32 - Exhaustible Resources and Economic Development
Q43 - Energy and the Macroeconomy
Q54 - Climate; Natural Disasters
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 07 Jun 2016 14:01
Last Modified: 15 May 2019 13:29
OAI ID: oai:tse-fr.eu:30209
URI: http://publications.ut-capitole.fr/id/eprint/19713

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