The production of renewable energy is much more intensive in minerals than that from fossil resources. The scarcity of certain minerals limits the potent ial for substituting renewable energy for declining fossil resources. However, minerals can be recycled, while fossil resources cannot. We show that the greater the recycling rate of minerals, the more the energy mix should rely on renewable energy, and the sooner sho uld investment in renewable capacity take place. Our original mechanism affecting the optimal timing of investment in renewable is active even in the presence of other —better known— mechanisms affecting the decision.

Co-authors :  Adrien Fabre (Paris School of Economics and University Paris 1 Panthéon Sorbonne.) Mouez Fodha (Paris School of Economics and  University Paris 1 Panthéon Sorbonne)