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Full-Text Articles in Physical Sciences and Mathematics
Global Fossil Energy Markets And Climate Change Mitigation: An Analysis With Remind, Nico Bauer, Ioanna Mouratiadou, Gunnar Luderer, Lavinia Baumstark, Robert J. Brecha, Ottmar Edenhofer, Elmar Kriegler
Global Fossil Energy Markets And Climate Change Mitigation: An Analysis With Remind, Nico Bauer, Ioanna Mouratiadou, Gunnar Luderer, Lavinia Baumstark, Robert J. Brecha, Ottmar Edenhofer, Elmar Kriegler
Physics Faculty Publications
We analyze the dynamics of global fossil resource markets under different assumptions for the supply of fossil fuel resources, development pathways for energy demand, and climate policy settings. Resource markets, in particular the oil market, are characterized by a large discrepancy between costs of resource extraction and commodity prices on international markets. We explain this observation in terms of (a) the intertemporal scarcity rent, (b) regional price differentials arising from trade and transport costs, (c) heterogeneity and inertia in the extraction sector. These effects are captured by the REMIND model. We use the model to explore economic effects of changes …
The Carbon Rent Economics Of Climate Policy, Matthias Kalkuhl, Robert J. Brecha
The Carbon Rent Economics Of Climate Policy, Matthias Kalkuhl, Robert J. Brecha
Physics Faculty Publications
By reducing the demand for fossil fuels, climate policy can reduce scarcity rents for fossil resource owners. As mitigation policies ultimately aim to limit emissions, a new scarcity for “space” in the atmosphere to deposit emissions is created. The associated scarcity rent, or climate rent (that is, for example, directly visible in permit prices under an emission trading scheme) can be higher or lower than the original fossil resource rent. In this paper, we analyze analytically and numerically the impact of mitigation targets, resource availability, backstop costs, discount rates and demand parameters on fossil resource rents and the climate rent. …
Ten Reasons To Take Peak Oil Seriously, Robert Brecha
Ten Reasons To Take Peak Oil Seriously, Robert Brecha
Physics Faculty Publications
Forty years ago, the results of modeling, as presented in The Limits to Growth, reinvigorated a discussion about exponentially growing consumption of natural resources, ranging from metals to fossil fuels to atmospheric capacity, and how such consumption could not continue far into the future. Fifteen years earlier, M. King Hubbert had made the projection that petroleum production in the continental United States would likely reach a maximum around 1970, followed by a world production maximum a few decades later. The debate about “peak oil," as it has come to be called, is accompanied by some of the same vociferous …