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For any emission trading system (ETS) with quantity-based endogenous supply of allowances, there exists a negative 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...
Persistent link: https://www.econbiz.de/10012141063
Under which conditions unilateral tightening of climate policy causes a weak or strong green paradox or even decreases …, as the utilization of backstop by the country which tightens its climate policy always prevents a weak green paradox. As … a consequence, the effect of a tighter climate policy on social welfare can be reversed. Due to the stock dependence of …
Persistent link: https://www.econbiz.de/10010246770
. -- climate policy ; green paradox ; non-renewable resources ; scarcity ; carbon tax ; announcement effects ; implementation lag …
Persistent link: https://www.econbiz.de/10009130265
For any emission trading system (ETS) with quantity-based endogenous supply of allowances, there exists a negative 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...
Persistent link: https://www.econbiz.de/10012105543
With the new rules of the EU ETS, involving cancellation of allowances, cumulative emissions are no longer fixed but depending on the market outcome. Perino (2018) showed that additional abatement effort can reduce cumulative emissions if it occurs within a few years. This article shows that...
Persistent link: https://www.econbiz.de/10012022186
We investigate how irreversibility in "dirty" and "clean" capital stocks affects optimal climate policy, from both …
Persistent link: https://www.econbiz.de/10011794242
Under which conditions unilateral tightening of climate policy causes a weak or strong green paradox or even decreases … the utilization of backstop by the country which tightens its climate policy always prevents a weak green paradox. As a … consequence, the effect of a tighter climate policy on social welfare can be reversed. Due to the stock dependence of extraction …
Persistent link: https://www.econbiz.de/10010850533
The Green Paradox is a phenomenon that arises when climate policies actually worsen the problem of global warming. For … the Green Paradox literature and discusses the relevance of the theory for real world climate policies. …
Persistent link: https://www.econbiz.de/10010904940
Policies aimed at reducing emissions from fossil fuels may increase climate damages. This “Green Paradox” emerges if … effective in dealing with climate change if policy makers commit to a high initial tax level and to a specific range of growth …
Persistent link: https://www.econbiz.de/10010541208
of climate policy – a new version of the green paradox. Smart combinations of carbon prices and renewable energy …
Persistent link: https://www.econbiz.de/10010678883