Van Long, N.Stähler, F.2018-03-192018-03-192018Environmental and Resource Economics, 2018; 69(1):159-1660924-64601573-1502http://hdl.handle.net/2440/111110Published online: 30 September 2016This paper demonstrates that technological progress in production of renewable energy can influence the extraction path of fossil fuels indirectly by a change in the equilibrium interest rate. We show in a simple model that the indirect effect can be so strong that firstperiod or even aggregate extraction levels rise with green technological progress, contrary to popular expectations.en© Springer Science+Business Media Dordrecht 2016Resource extraction; technological progress; general equilibriumJournal article003007610610.1007/s10640-016-0069-4370799