Abstract: The energy system is capital- and infrastructure-intensive. An energy transition requires changing historic patterns; investments will be needed both for renewable electricity and legacy systems to smooth the transition. These two types of infrastructure face different economic incentives and regulatory constraints. Differences in market structures across energy sources are relevant, including linkages to financial markets for capital and risk management. Because policy is an important factor guiding the energy transition, the structure and certainty of the policy path is important to facilitating long-lived investments while avoiding the deterring effect of stranding assets.
Bio: Timothy Fitzgerald is a visiting associate professor at the Baker School of Public Policy and Public Affairs at the University of Tennessee during AY 2024-25. He is also currently serving as chair of the Physical Infrastructure Subcommittee of the Energy and Environmental Markets Advisory Committee at the Commodity Futures Trading Commission. His research interests include natural resource and environmental economics, focusing on energy issues. In 2017-2018, he served at the Council of Economic Advisers in the White House as a Senior Economist and as Chief International Economist. He has been a fellow at Resources for the Future in Washington, DC, and at the Property and Environment Research Center in Bozeman, Montana.