Substituting Clean for Dirty Energy: A Bottom-Up Analysis

We analyze the macroeconomic substitution between clean and dirty inputs through lens of production isoquants derived from a numerical bottom-up model electricity production. This approach also allows us to study high shares energy not observable today isolate mechanisms that impact elasticity inputs. Our results, for first time, demonstrate aggregate functions used in models can represent complex patterns obtained models. Further, we show (i) are essential production—as long as some storage is available, above unity; (ii) no single technology indispensable, but balanced mix facilitates substitution; (iii) harder higher energy. Finally, how changing availability generation technologies be implemented