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Imperfect Environmental Policy and Polluting Emissions: The Green Paradox and Beyond

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  • van der Werf, Edwin
  • Di Maria, Corrado

Abstract

Well-intended policies aimed at reducing greenhouse gas emissions may have unintended undesirable consequences. Recently, a large literature has emerged showing that such a 'green paradox' may occur in response to particular policies. We review this literature and identify four different imperfect policy approaches that may induce a green paradox. We discuss under what conditions a green paradox may occur and highlight avenues for future research.

Suggested Citation

  • van der Werf, Edwin & Di Maria, Corrado, 2012. "Imperfect Environmental Policy and Polluting Emissions: The Green Paradox and Beyond," International Review of Environmental and Resource Economics, now publishers, vol. 6(2), pages 153-194, March.
    • Handle: RePEc:now:jirere:101.00000050
    DOI: 10.1561/101.00000050
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    More about this item

    Keywords

    Climate policy; Green paradox; Nonrenewable resources; Scarcity; Carbon tax; Announcement effects; Implementation lag; Carbon leakage; Backstop technology;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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