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.
Tim is a Visiting Associate Professor at the Baker School of Public Policy and Public Affairs at The University of Tennessee and an Associate Professor in the Rawls College of Business at Texas Tech University. 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, with a focus on energy issues.