Transition to a Low-Carbon Energy System

Abstract

In this chapter, we present historical trends related to carbon dioxide (CO2) and greenhouse gas (GHG) emissions affecting the carbon budget. This documents the fact that the use of fossil fuels, coal in particular, creates a very large negative externality. We present a dynamic model starting from a mixed energy sector with fossil fuel and renewable energy and indicate different pathways to the decarbonization of the economies of advanced and developing countries.