Click here for search results
Optimal transition from coal to gas and renewable power under capacity constraints and adjustment costs, Volume 1
Author:Lecuyer, Oskar; Vogt-Schilb, Adrien; Country:World;
Date Stored:2014/07/29Document Date:2014/07/01
Document Type:Policy Research Working PaperSubTopics:Carbon Policy and Trading; Energy Production and Transportation; Environment and Energy Efficiency; Energy and Environment; Climate Change Mitigation and Green House Gases
Language:EnglishRegion:The World Region
Report Number:WPS6985Collection Title:Policy Research working paper ; no. WPS 6985
Volume No:1  

Summary: This paper studies the optimal transition from existing coal power plants to gas and renewable power under a carbon budget. It solves a model of polluting, exhaustible resources with capacity constraints and adjustment costs (to build coal, gas, and renewable power plants). It finds that optimal investment in renewable energy may start before coal power has been phased out and even before investment in gas has started, because doing so allows for smoothing investment over time and reduces adjustment costs. Gas plants may be used to reduce short-term investment in renewable power and associated costs, but must eventually be phased out to allow room for carbon-free power. One risk for myopic agents comparing gas and renewable investment is thus to overestimate the lifetime of gas plants -- e.g., when computing the levelized cost of electricity -- and be biased against renewable power. These analytical results are quantified with numerical simulations of the European Commission's 2050 energy roadmap.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 29 pagesOfficial version*2.03 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: