The Fossile Episode
Since the start of the Industrial Revolution fossil carbon has been a much cheaper source of energy than biocarbon. However, over time, the exhaustible fossil fuel ressource became scarcer and competition for biocarbon increased. This process will lead to increasing food prices. The calibration of John Hassler and Hans-Werner Sinn leads to a price increase of 40% if capital and labor are allowed to move to the biocarbon sector. Otherwise, the price increase is much higher.