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- W2340886332 abstract "E n e rg y E c o n o m ic s R e se a ch A d va n c e s 1. Two Big Ideas: Markets and Their Failures Historians eschew mono-causal theories of history. Still, energy has profoundly shaped human history, civilization and its institutions. In the rich tapestry of history, energy threads are found everywhere. Empires, from ancient times to the present, have been profoundly shaped by their access to, and use of energy. The historical evolution of energy and energy-related innovations has profoundly affected technological and civilizational progress. To devise a suitable framework for the inherently interdisciplinary study of energy, it is necessary to develop simple narratives for relevant disciplines based on big ideas found therein. Constructing a narrative of the economics of energy for the non-economist is a daunting task. What are the ‘big ideas’? There are many. We will focus on two: markets and their failures. Markets provide a remarkably responsive and adaptive mechanism for supplying energy. In broadest terms, the historically unprecedented successes of the industrial revolution are testament to the efficacy of markets in general, and energy markets in particular. Why then should governments be involved in markets? Why can’t markets solve societal problems on their own? The most commonly cited reasons are externalities and market power, both of which regularly occur in energy markets. Today, the most prominent example of an adverse energy-related externality is the production of greenhouse gases from hydrocarbon combustion. Various approaches have been proposed including taxing the externality, (e.g., carbon taxes); or, capping the total level of emissions and Energy, Markets and Their Failures" @default.
- W2340886332 created "2016-06-24" @default.
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- W2340886332 date "2014-01-01" @default.
- W2340886332 modified "2023-09-26" @default.
- W2340886332 title "Energy, Markets and Their Failures" @default.
- W2340886332 hasPublicationYear "2014" @default.
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