Gerlagh, Reyer; Heijmans, Roweno; Rosendahl, Knut Einar - 2019
demand shock, e.g. induced by abatement policy, that increases aggregate supply and thus cumulative emissions. We prove this … green paradox for a general model and then apply it to the details of EU ETS. In 2018, new rules for a Market Stability … future, are inverted by the new rules and increase cumulative emissions. We provide quantitative evidence of our result for a …