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Solar Power: A new mathematical definition and theoretical proof it is a Green Public Good

1 Travaux Publics, Becket House, London, United Kingdom
2 School of Civil Engineering, Department of Water Resources and Environmental Engineering, National Technical University of Athens, Zografou, Greece

Special Issues: Energy Finance

Solar Power is redefined in a new mathematical framework which describes its pertinent properties. It is shown that it is an economic good and that there are Property Rights and Economic Ownership associated with it. Its externalities have been examined with a view of including economic obligations created during the post emission control periods which correspond to growth without climate sustainability obligations. Also its valuation has been examined in states of both non-use and use in electricity production. A new definition of a Green Public Good is described which retains Samuelson's classic definition and has an climate externality component which under Pigouvian tax/subsidy does not satisfy Samuelson's second condition for Pareto optimality.
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