Showing 1 - 10 of 63
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
Optimal climate policy is studied. Coal, the abundant resource, contributes more CO2 per unit of energy than the exhaustible resource, oil. We characterize the optimal sequencing oil and coal and departures from the Herfindahl rule. “Preference reversal” can take place. If coal is very dirty...
Persistent link: https://www.econbiz.de/10008842254
Optimal climate policy is studied. Coal, the abundant resource, contributes more CO2 per unit of energy than the exhaustible resource, oil. We characterize the optimal sequencing oil and coal and departures from the Herfindahl rule. "Preference reversal" can take place. If coal is very dirty...
Persistent link: https://www.econbiz.de/10009009608
Persistent link: https://www.econbiz.de/10009549285
Our main message is that it is optimal to use less coal and more oil once one takes account of coal being a backstop which emits much more CO2 than oil. The way of achieving this is to have a steeply rising carbon tax during the initial oil-only phase, a less-steeply rising carbon tax during the...
Persistent link: https://www.econbiz.de/10009240891
...The optimal carbon tax reduces emissions from burning fossil fuel, both in the short and medium run. Furthermore, it brings forward the date that renewables take over from fossil fuel and encourages the market to keep more fossil fuel locked up. A renewables subsidy induces faster fossil fuel...
Persistent link: https://www.econbiz.de/10010511239
Persistent link: https://www.econbiz.de/10011288654
Persistent link: https://www.econbiz.de/10009773806
Persistent link: https://www.econbiz.de/10009699834
Persistent link: https://www.econbiz.de/10010363253