On the Transition from Instantaneous to Time-Lagged Capital Accumulation: The Case of Leontief-Type Production Functions

Winkler, Ralph; Brandt-Pollmann, Ullrich; Moslener, Ulf; Schloeder, Johannes P.

doi:10.2139/ssrn.650169

Cited by 9 publications

(8 citation statements)

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“…The solution to this equation is analyzed in detail in Winkler et al (2005). In general, the optimal paths converge oscillatorily and exponentially damped towards the stationary state, which is given by .8) A.3 Saddle point stability of the interior solution…”

Section: Resultsmentioning

confidence: 99%

The Role of Environmental and Technology Policies in the Transition to a Low-Carbon Energy Industry

Heinzel¹,

Winkler

2007

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: In a dynamic general equilibrium model we study the interplay between gradual and structural change in the transition to a low-carbon energy industry. We focus on the welfare-theoretic consequences of diverging social and private rates of time preference and a time-to-build feature in capital accumulation. Both features are particularly important in the transformation of energy systems. We show that only a combination of environmental and technology policies can achieve a socially optimal transition. We thus provide a new reason for environmental regulation to be complemented by technology policy such as a non-distortionary investment subsidy. Terms of use: Documents in EconStor may

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Section: Resultsmentioning

confidence: 99%

The Role of Environmental and Technology Policies in the Transition to a Low-Carbon Energy Industry

Heinzel¹,

Winkler

2007

SSRN Journal

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“…It can be shown that the characteristic equation (A.9) has at most two negative real roots and an infinite number of conjugate pairs of complex roots of which only a finite number have positive real part (Proposition 2 in Winkler et al 2005). All summands which correspond to characteristic roots with negative real parts converge to zero in the long-run.…”

Section: A2 Optimal System Dynamicsmentioning

confidence: 99%

“…Formally, our paper builds on the structural change frameworks ofWinkler (2005) andWinkler et al (2005), and is more loosely related to recent growth models with time-lagged stock accumulation (e.g.,Bambi 2008;Boucekkine et al 2005;Fabbri and Gozzi 2008).…”

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confidence: 99%

Distorted Time Preferences and Time-to-Build in the Transition to a Low-Carbon Energy Industry

Heinzel

Winkler²

2010

Environ Resource Econ

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We study the welfare-theoretic consequences of diverging social and private time-preference rates and time-to-build for the transition to a low-carbon energy industry. We show that time-to-build, a prevalent characteristic of capital accumulation in the energy sector, amplifies the distortion induced by the split discount rates. Thus, these two characteristics create in a mutually reinforcing way less favorable circumstances for the introduction of new clean energy technologies as compared to the social optimum, even if welfare losses from emissions are internalized. We discuss resulting policy implications with particular emphasis on the energy sector.

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“…In fact, we consider a delivery lag, i.e., an exogenously given delay between investment and capital accumulation, which is discussed in detail in Winkler et al (2005).…”

Section: The Transition From Instantaneous To Delayed Capital Accumulmentioning

confidence: 99%

Numerical Solution of Optimal Control Problems with Constant Control Delays

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On the Transition from Instantaneous to Time-Lagged Capital Accumulation: The Case of Leontief-Type Production Functions

Cited by 9 publications

References 0 publications

The Role of Environmental and Technology Policies in the Transition to a Low-Carbon Energy Industry

The Role of Environmental and Technology Policies in the Transition to a Low-Carbon Energy Industry

Distorted Time Preferences and Time-to-Build in the Transition to a Low-Carbon Energy Industry

Numerical Solution of Optimal Control Problems with Constant Control Delays

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