Biofuels Subsidies and the Green Paradox
AbstractThis paper develops sufficient conditions under which the Weak Green Paradox may (and may not) hold in terms of subsidies for biofuel production such that the supply-side responses by fossil fuel producers may more than offset the substitution to biofuels. Analytical results are derived and numerical simulations show that, under a wide range of parameter values, biofuel subsidies will increase the rate of extraction of fossil fuels in the short and medium term, and possibly bring climate-change damages closer to the present.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2960.
Date of creation: 2010
Date of revision:
biofuels subsidies; the Green Paradox;
Find related papers by JEL classification:
- Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
- 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
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Santiago J. Rubio & Luisa Escriche, 1998.
"- Strategic Pigouvian Taxation, Stock Externalities And Polluting Non-Renewable Resources,"
Working Papers. Serie EC
1998-23, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Rubio, Santiago J. & Escriche, Luisa, 2001. "Strategic pigouvian taxation, stock externalities and polluting non-renewable resources," Journal of Public Economics, Elsevier, vol. 79(2), pages 297-313, February.
- Subhayu Bandyopadhyay & Sumon Bhaumik & Howard J. Wall, 2009.
"Biofuel subsidies: an open-economy analysis,"
2009-053, Federal Reserve Bank of St. Louis.
- Chakravorty, Ujjayant & Hubert, Marie-Helene & Nostbakken, Linda, 2009.
"Fuel versus Food,"
2009-20, University of Alberta, Department of Economics.
- Murray C. Kemp & Ngo Van Long, 2007. "Extracting Several Resource Deposits of Unknown Size: Optimal Order," CIRANO Working Papers 2007s-10, CIRANO.
- BAHEL, Eric A. & MARROUCH, Walid & GAUDET, Gérard, 2011.
"The Economics of Oil, Biofuel and Food Commodities,"
Cahiers de recherche
2011-02, Universite de Montreal, Departement de sciences economiques.
- Bahel, Eric & Marrouch, Walid & Gaudet, Gérard, 2013. "The economics of oil, biofuel and food commodities," Resource and Energy Economics, Elsevier, vol. 35(4), pages 599-617.
- BAHEL, Eric & MARROUCH, Walid & GAUDET, Gérard, 2011. "The Economics of Oil, Biofuel and Food Commodities," Cahiers de recherche 02-2011, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Eric Bahel & Walid Marrouch & Gerard Gaudet, 2010. "The Economics of Oil, Biofuel and Food Commodities," Working Papers e07-26, Virginia Polytechnic Institute and State University, Department of Economics.
- Hans-Werner Sinn, 2007.
"Public Policies against Global Warming,"
CESifo Working Paper Series
2087, CESifo Group Munich.
- Long, Ngo Van & Sinn, Hans-Werner, 1985. "Surprise Price Shifts, Tax Changes and the Supply Behaviour of Resource Extracting Firms," Australian Economic Papers, Wiley Blackwell, vol. 24(45), pages 278-89, December.
- Michael Hoel, 2008. "Bush Meets Hotelling: Effects of Improved Renewable Energy Technology on Greenhouse Gas Emissions," CESifo Working Paper Series 2492, CESifo Group Munich.
- Gérard Gaudet, 2007. "Natural resource economics under the rule of Hotelling," Canadian Journal of Economics, Canadian Economics Association, vol. 40(4), pages 1033-1059, November.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Could the âGreen Paradoxâ Thwart a Carbon Tax?
by James Handley in Carbon Tax Center on 2013-10-23 14:33:55
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If references are entirely missing, you can add them using this form.