Climate Change and Energy Technological Progress
In most climate models the elasticity of substitution between green and dirty energy is presumed static. So, what happens if we augment a climate-macro model with a storage technology that improves the elasticity of substitution? How would this type of innovation compare to reducing renewable energy costs and affect optimal policy outcomes? We will investigate how increasing the elasticity of substitution between fossil fuels and renewable energy over time can mitigate increases in the global mean temperature and losses in consumption due to climate change. To do this, we will construct a quantitative integrated assessment model (IAM) to study the effects of climate policy and energy-related technological progress across world regions.
Jesús Fernández-Villaverde
Howard Marks Presidential Professor of EconomicsJesús Fernández-Villaverde is the Howard Marks Presidential Professor of Economics in the Department of Economics at the University of Pennsylvania. He serves as director of the Penn Initiative for the Study of the Markets at Penn.
