Energy
4 years ago

Dwindling energy supply threatens economic growth despite energy-saving tech

RePEc: Research Papers in Economics
A comparative study of Energy Saving Technical Progress in a Vintage Capital Model
Agustín Pérez‐Barahona, Benteng Zou

Paper Summary

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Energy saving technologies may not always help both the economy and energy conservation. In a study using a model of old and new technologies, researchers found that energy saving technologies might not work well if energy supply is decreasing. Only when energy supply stays constant can these technologies lead to long-term growth.