Policies aimed at reducing emissions from fossil fuels may increase climate damages. This "Green Paradox" emerges if resource owners increase near-term extraction in fear of stricter future policy measures. Hans-Werner Sinn (2008) showed that the paradox occurs when increasing resource taxes are...

Policies aimed at reducing emissions from fossil fuels may increase climate damages. This 'Green Paradox' emerges if resource owners increase near-term extraction in fear of stricter future policy measures. Hans-Werner Sinn (2008) showed that the paradox occurs when increasing resource taxes are...

The transport sector is at the center of discussions on accelerating the energy transition due to its still increasing contribution to greenhouse gas emissions worldwide; therefore, the EU has set binding targets for the use of renewable energy in transport through the Renewable Energy Directive....

The Green Paradox is a phenomenon that arises when climate policies actually worsen the problem of global warming. For several years, the topic has become of interest to European economists. This article reviews a selection of contributions to the Green Paradox literature and discusses the...