The unstudied barriers to widespread renewable energy deployment: Fossil fuel price responses
By E. Foster, M. Contestabile, J. Blázquez, B. Manzano, M. Workman, Nilay Shah. 2017
125 citations recorded by the source corpus.
Renewable energy policy focuses on supporting the deployment of renewable power generators so as to reduce their costs through scale economies and technological learning. It is expected that, once cost parity with fossil fuel generation is achieved, a transition towards renewable power should continue without the need for further renewable energy subsidies. However, this reasoning implicitly assumes that the cost of fossil fuel power generation does not respond to the large scale penetration of renewable power. In this paper we build a standard economic framework to test the validity of this assumption, particularly in the case of coal and gas fired power generation. We find that it is likely that the cost of fossil fuel power generation will respond to the large scale penetration of renewables, thus making the renewable energy transition slower or more costly than anticipated. More analysis is needed in order to be able to quantify this effect, the occurrence of which should be considered in the renewable energy discourse.
Subfields: Economics and Econometrics, Global and Planetary Change
View Paper: https://www.semanticscholar.org/paper/55ff42f149d4918ac93d3293646c978c1288f5f9
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In Economics and Econometrics
Citations in the corpus
- Does renewable energy drive sustainable economic growth? multivariate panel data evidence for EU-28 countries. (2017, unknown): “[25] discussed the interplay amongst renewable energy diffusion and the value chains of fossil fuels.”
- Determinants of renewable energy growth in Sub-Saharan Africa: Evidence from panel ARDL (2018, background): “However, the prices of traditional energy sources fail to reflect the real costs of their use, when compared to those of RE considering the environmental costs are not taken into account (Menz & Vachon, 2006; Marques et al., 2010; Foster et al., 2017); anthropogenic greenhouse gas emissions are incr”