Changing our energy sources is fundamental in moving towards a low-carbon economy. Changes in the prices of different energy sources are one reason we substitute away from one source in favour of another. Recent analysis focuses on how the choice of energy inputs responds to change in relative price using an unconventional approach in which simulated future data is used instead of historical data in order to gauge energy price responsiveness. These documents draw on insights from this research on responsiveness to price changes, insights that can inform policy and guide a smoother transition to a low-carbon economy.
This Research Summary is based on a Master's project by Adam Baylin-Stern, under the supervision of Dr. Mark Jaccard and Jotham Peters at Simon Fraser University, and accompanied by the Research Report “Substitution in Energy-Economy Models: Using a Hybrid Simulation Model to Estimate U.S. Energy Elasticities”.