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Economic Effects of Increased Penetration of Solar Energy

Recent energy policy proposals have given an important place to solar energy, and other new-technology energy sources, in the projected development of the U.S. energy system over the rest of the century. For example, the Domestic Policy Review of Solar Energy (U.S. Department of Energy, 1979), presented to the President in February 1979, raised the possibility that 20 percent of primary energy input in the year 2000 could be supplied from solar and other renewable sources. Since these technologies now provide only a small fraction of total energy input, changes of the magnitude involved in these proposals imply a major restructuring of the energy system.

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Energy Specializations: Renewables – Solar

JEL Codes: Q42: Alternative Energy Sources, Q41: Energy: Demand and Supply; Prices

Keywords: Renewable energy, Solar energy, Market penetration

DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No3-5

Published in Volume 1, Number 3 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


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