Unintended detrimental effects of environmental policy : the green paradox and beyond

Well-intended policies aimed at reducing greenhouse gas emissions may have unintended undesirable consequences. Recently, a large literature has emerged showing under what conditions this so-called 'Green Paradox' may occur. We review this literature and identify the key mechanisms behind these paradoxical policy outcomes and highlight avenues for future research. -- climate policy ; green paradox ; non-renewable resources ; scarcity ; carbon tax ; announcement effects ; implementation lag ; carbon leakage ; backstop technology