The Debate of the Green Paradox

The theory of the “Green Paradox” subverts the traditional theoretical foundation of the environmental policies. The crucial question is whether the green paradox holds and how large the impact is in reality, which has provoked heated debate among economists. This article identifies and reveals the virtues and weaknesses of the green paradox theory through a comparative literature review. Both theoretical studies and empirical work are covered. It is found that the theory is at least logically sound, though it can be extended and modified in different ways. In addition, the evidence from data and empirical studies is mixed