Endogenous Substitution of Energy Resources: Theory and Application to the Energy Sector

THE ANALYSIS OF CLIMATE CHANGE MITIGATION POLICIES at the global or the national level ultimately depends on the assumed energy mix, in particular on the current and projected mix of carbon-intensive resources such as coal, oil, and natural gas as well as cleaner resources such as nuclear energy, hydroelectricity, and renewables. Several different modeling approaches are currently used by researchers to project carbon emissions.