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• In the energy sector prevail fossil fuel incumbents that might inhibit renewable energy entrants. • Our paper provides a game-theoretic stylization of competition between those two types of firms, while incumbents set prices the entrants respond with quantity adjustments. • Solutions are obtained through a Non-linear Model Predictive Control algorithm. • In contrast to previous studies, in this proposed model, both firms are strategically interacting. • Results highlight the importance of the initial cash-flow levels and fiscal subsidies for fringe firms' performances. Governments attempt to provide the energy sector with incentives to replace old technologies with new renewable energy ones as the most effective way to combat climate change. Yet, in the energy sector prevail fossil fuel incumbents that might inhibit renewable energy entrants. Our paper provides a game-theoretic stylization of competition between those two types of firms. Incumbents set prices, and entrants respond with quantity adjustments. In the context of a dynamic limit pricing model, we study the entry dynamics in a market in which the dominant firms (fossil fuel energy suppliers) face the entry of a group of competitive fringe firms (renewable energy suppliers) when the dominant firms have easier access to financial markets but, the fringe firms fund their expansion with internal finance. We also investigate the effect of the public support for renewable energy firms through subsidies. Our model is built on Judd and Peterson (1986, JET), but our solutions are obtained through a non-linear model predictive control (NMPC) algorithm. By this technique, we can predict the outcome of the competition between incumbents and entrants and the impact of financial and fiscal policies considering moving-horizon strategies. [ABSTRACT FROM AUTHOR]

• There is spatial correlation of electricity consumption of China. • Analyze impact of technology and industrial structure on electricity consumption. • Industrial structure contributes more to reduce electricity consumption. • Region heterogeneity is obvious among different regions and grid service zones. The increase of electricity consumption not only leads to economic growth, but also pollutes environment due to the heavy dependence on fossil fuels. How to reduce the electricity consumption without affecting the economic development is a challenging and pivotal issue. Relevant empirical evidence is scarce, so this paper deepens the understanding of two paths to decrease electricity consumption: technological progress and upgrading of industrial structure based on spatial and heterogeneity analyses. By constructing two spatial panel models, results show that electricity consumption among provinces in China is positively spatial-related and has certain path-dependent characteristics. To promote the technological progress and optimize the industrial structure are two effective solutions to reduce electricity consumption, and the latter channel plays a more important role. Heterogeneity among different regions and grid service zones exists obviously. [ABSTRACT FROM AUTHOR]

• The oil price-inflation pass-through is analyzed using a wavelet coherency analysis. • The oil price-inflation pass-through has decreased during the analyzed period. • The oil price-inflation relationship varies across frequencies. This paper analyzes the oil price-inflation pass-through by studying the relationship between oil prices and U.S. Consumer Price Index (CPI) over the period January 1871–June 2018, at different frequencies, using a wavelet coherency analysis. In this long period of time characterized by significant structural changes, which have changed the role of fossil fuel prices (specially, crude oil) relative to renewable and alternative fuels, our main results suggest that the relationship between oil prices and CPI has changed over the analyzed time period, implying a decrease in the oil price- inflation pass-through over time. Furthermore, this relationship also varies across frequencies, suggesting that the evidence of oil price-inflation pass-through with oil prices leading CPI is weaker in the short-run. [ABSTRACT FROM AUTHOR]