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Energy mix persistence and the effect of carbon pricing

Vol: 
2001
Author name: 
Best, R
Burke, PJ
Year: 
2020
Month: 
February
Abstract: 

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 toward renewable energy. Our estimates provide empirical support to policymakers seeking to implement carbon pricing to transition their energy systems in a lower-carbon direction.

Publication file: 

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