摘要：Fossil fuels are non-renewable carbon resources, and the extraction
path of these resources depends both on present and future demand.
When this .Hotelling feature. is taken into consideration, the whole
price path of carbon fuel will shift downwards as a response to the
reduced cost of the renewable substitute. An implication of this is
that greenhouse gas emissions in the near future may increase as a
response to the reduced cost of the renewable substitute. If this is
the case, increased climate costs may outweigh the bene.ts of reduced
costs of a substitute, thus reducing overall social welfare.
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