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sensitivity analysis upon the role of the 2020 renewable targets and increased energy efficiency improvements is also carried out …
Persistent link: https://www.econbiz.de/10010199756
The Green Paradox states that, in the absence of a tax on CO2 emissions, subsidizing a renewable backstop such as solar or wind energy brings forward the date at which fossil fuels become exhausted and consequently global warming is aggravated. We shed light on this issue by solving a model of...
Persistent link: https://www.econbiz.de/10003939168
final energy consumption, and improved energy efficiency. We find that the renewable and energy-efficiency targets have been …
Persistent link: https://www.econbiz.de/10011933893
blocs act strategically in fossil fuel markets. When the policy bloc sets a carbon tax, the fuel import price set by the … fringe also gains from reduced fuel import prices, and gains more when the policy bloc is larger. When the policy bloc sets … an emissions cap, fuel demand becomes less price elastic. In response, a monopolistic exporter sets the fuel export price …
Persistent link: https://www.econbiz.de/10008699680
Producers or consumers faced with an increase in taxes are usually able to shift parts of it to other levels in the value chain. We examine who is actually bearing the burden of increased energy taxes in the EU-area - consumers or exporters. Traditional tax incidence theory presumes spot...
Persistent link: https://www.econbiz.de/10011399311
If investors fear that future carbon taxes will be lower than currently announced by policy makers, long-run investments in greenhouse gas mitigation may be smaller than desirable. On the other hand, owners of a non-renewable carbon resource that underestimate future carbon taxes will postpone...
Persistent link: https://www.econbiz.de/10003939955
This paper develops a model in which supply of a non-renewable resource can adjust through two margins: the rate of depletion and the rate of field opening. Faster depletion of existing fields means that less of the resource can ultimately be extracted, and optimal depletion of open fields...
Persistent link: https://www.econbiz.de/10009312184
Why have policies aimed at reducing the demand for carbon not succeeded in slowing down global carbon extraction and CO2 emissions, and why have carbon prices failed to increase over the last three decades? This comment argues that this is because of the Green Paradox, i.e. - (the anticipation...
Persistent link: https://www.econbiz.de/10010528868
We argue that the literature on the green paradox has largely ignored the demand side of the resource market, and that this side of the market may mitigate the size of an emissions increase in response to imperfect climate policies. These claims are informed by recent empirical findings. Our...
Persistent link: https://www.econbiz.de/10009721992
This paper explains how, in the context of incomplete coordination among all countries, unilateral policies that might at first sight seem pro-green could actually turn out to harm the global environment. The free-riding motives and the difficulty of reaching an effective international...
Persistent link: https://www.econbiz.de/10010245993