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Energy mix persistence and the effect of carbon pricing
Author(s) -
Best Rohan,
Burke Paul J.
Publication year - 2020
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.12370
Subject(s) - persistence (discontinuity) , energy (signal processing) , renewable energy , energy mix , energy transition , sample (material) , economics , natural resource economics , environmental economics , business , ecology , engineering , electricity generation , chemistry , power (physics) , biology , mathematics , statistics , physics , medicine , alternative medicine , geotechnical engineering , quantum mechanics , pathology , chromatography , panacea (medicine)
Energy mix persistence is a defining characteristic of energy systems, for reasons including the long‐lived nature of energy infrastructure and the role of local endowments. This persistence is evident in current energy‐type use being strongly influenced by past use. Our analysis uses data for eight energy types and a large sample of countries, finding varying degrees of energy mix persistence. We also find evidence that carbon pricing appears to have played a key role in tilting energy mixes from coal towards renewable energy. Our estimates provide empirical support to policymakers seeking to implement carbon pricing to transition their energy systems in a lower‐carbon direction.