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    Dynamic Energy Models and Carbon Mitigation Policies

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    Genre
    Thesis/Dissertation
    Date
    2012
    Author
    Tilley, Luke Alan
    Advisor
    Diamantaras, Dimitrios
    Committee member
    Swanson, Charles E.
    Fardmanesh, Mohsen
    Mester, Loretta Jean
    Department
    Economics
    Subject
    Economics
    Economic Theory
    Carbon
    Energy
    Macroeconomics
    Permanent link to this record
    http://hdl.handle.net/20.500.12613/4126
    
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    DOI
    http://dx.doi.org/10.34944/dspace/4108
    Abstract
    In this dissertation I examine a specific class of energy models and their implications for carbon mitigation policies. The class of models includes a production function capable of reproducing the empirically observed phenomenon of short run rigidity of energy use in response to energy price changes and long run flexibility of energy use in response to energy price changes. I use a theoretical model, parameterized using empirical data, to simulate economic performance under several tax regimes where taxes are levied on capital income, investment, and energy. I also investigate transitions from one tax regime to another. I find that energy taxes intended to reduce energy use can successfully achieve those goals with minimal or even positive impacts on macroeconomic performance. But the transition paths to new steady states are lengthy, making political commitment to such policies very challenging.
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