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Distorted Time Preferences and Structural Change in the Energy Industry

A Theoretical and Applied Environmental-Economic Analysis

  • Christoph Heinzel

Part of the Sustainability and Innovation book series (SUSTAINABILITY)

About this book

Introduction

This study contributes to the economic discounting debate by examining the welfare and policy implications of distorted time preferences for private investments. The analysis is applied to the energy industry, where it is of particular importance. In the transition to low-carbon energy generation, distorted time preferences are shown to induce a further distortion, in addition to that from the emission externality. Its extent varies directly with the time lag in capital accumulation. In order to implement the socially optimal path, environmental policy needs to be complemented by technology policy. The theoretical findings are applied to the upcoming structural change in the German electricity industry in the 2010s.

Keywords

Distorted Time Peferences Energy Industry Environmental Policy Environmental and Technology Policy Technological Change Time-to-build technology policy

Authors and affiliations

  • Christoph Heinzel
    • 1
  1. 1.Center for Energy and Environmental Markets (CEEM) School of Economics Australian School of BusinessUniversity of New South WalesSydneyAustralia

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-7908-2183-3
  • Copyright Information Physica-Verlag HD 2009
  • Publisher Name Physica-Verlag HD
  • eBook Packages Business and Economics
  • Print ISBN 978-3-7908-2182-6
  • Online ISBN 978-3-7908-2183-3
  • Series Print ISSN 1860-1030
  • Buy this book on publisher's site