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Energy mix persistence and the effect of carbon pricing

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  • Rohan Best

    (Department of Economics, Macquarie University)

  • Paul J Burke

    (Crawford School of Public Policy, Australian National University)

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.

Suggested Citation

  • Rohan Best & Paul J Burke, 2020. "Energy mix persistence and the effect of carbon pricing," CCEP Working Papers 2001, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:ccepwp:2001
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    Cited by:

    1. Csereklyei, Zsuzsanna & Anantharama, Nandini & Kallies, Anne, 2021. "Electricity market transitions in Australia: Evidence using model-based clustering," Energy Economics, Elsevier, vol. 103(C).
    2. Lijuan Zhang & Tatyana Ponomarenko, 2023. "Directions for Sustainable Development of China’s Coal Industry in the Post-Epidemic Era," Sustainability, MDPI, vol. 15(8), pages 1-32, April.
    3. Best, Rohan & Zhang, Qiu Yue, 2020. "What explains carbon-pricing variation between countries?," Energy Policy, Elsevier, vol. 143(C).
    4. Paul J. Burke, 2023. "On the way out: Government revenues from fossil fuels in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(1), pages 1-17, January.
    5. Rohan Best & Paul J. Burke & Frank Jotzo, 2020. "Carbon Pricing Efficacy: Cross-Country Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(1), pages 69-94, September.
    6. Rohan Best & Noura Saba, 2021. "Quantifying Australia’s Gender Superannuation Gap," The Economic Record, The Economic Society of Australia, vol. 97(318), pages 410-423, September.
    7. Hammerle, Mara & Best, Rohan & Crosby, Paul, 2021. "Public acceptance of carbon taxes in Australia," Energy Economics, Elsevier, vol. 101(C).
    8. Li, Yangfan & Zhang, Xiaoyun, 2023. "Recycling scheme of carbon pricing for inclusive decarbonization and energy transition: A recursive computable general equilibrium analysis in China," Renewable Energy, Elsevier, vol. 217(C).

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