Di Maria, Corrado; Lange, Ian; van der Werf, Edwin - In: European Economic Review 69 (2014) C, pp. 143-162
This paper presents the first empirical test of the green paradox hypothesis, according to which well-intended but imperfectly implemented environmental policies may lead to detrimental outcomes due to supply side responses. We use the introduction of the Acid Rain Program in the U.S. as a case...