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The Supply Side of CO2 with Country Heterogeneity

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  • Michael Hoel
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    Abstract

    Several recent articles have analyzed climate policy giving explicit attention to the non-renewable character of carbon resources. In most of this literature the economy is treated as a single unit, which in the context of climate policy seems reasonable to interpret as the whole world. However, carbon taxes and other climate policies differ substantially across countries. With such heterogeneity, the effects on emission paths of changes in taxes, costs and subsidies may be very different from what one finds for a hypothetical world of identical countries.

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    File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2011/wp-cesifo-2011-03/cesifo1_wp3393.pdf
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    Bibliographic Info

    Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3393.

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    Date of creation: 2011
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    Handle: RePEc:ces:ceswps:_3393

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    Related research

    Keywords: climate change; exhaustible resources; renewable energy; green paradox;

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    References

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    1. Frederick van der Ploeg & Cees Withagen, 2010. "Is there really a Green Paradox?," Tinbergen Institute Discussion Papers 10-020/3, Tinbergen Institute, revised 27 Aug 2012.
    2. Ayong Le Kama, Alain & Fodha, Mouez & Lafforgue, Gilles, 2009. "Optimal Carbon Capture and Storage Policies," TSE Working Papers 09-095, Toulouse School of Economics (TSE).
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    Cited by:
    1. Kristine Grimsrud & Knut Einar Rosendahl & Halvor Briseid Storrøsten & Marina Tsygankova, 2013. "Short run effects of bleaker prospects for oligopolistic producers of a non-renewable resource," Discussion Papers 733, Research Department of Statistics Norway.
    2. Hoel, Michael, 2012. "Second-best Climate Policy," Memorandum 04/2012, Oslo University, Department of Economics.
    3. Fischer, Carolyn & Salant, Stephen, 2012. "Alternative Climate Policies and Intertemporal Emissions Leakage: Quantifying the Green Paradox," Discussion Papers dp-12-16, Resources For the Future.
    4. Mads Greaker & Michael Hoel & Knut Einar Rosendahl, 2012. "Does a renewable fuel standard for biofuels reduce climate costs?," Discussion Papers 720, Research Department of Statistics Norway.
    5. Edwin van der Werf & Corrado Di Maria, 2011. "Unintended Detrimental Effects of Environmental Policy: The Green Paradox and Beyond," CESifo Working Paper Series 3466, CESifo Group Munich.
    6. Michielsen, T.O., 2011. "Brown Backstops versus the Green Paradox (Revision of CentER DP 2011-076)," Discussion Paper 2011-110, Tilburg University, Center for Economic Research.
    7. Thomas Michielsen, 2013. "Brown Backstops Versus the Green Paradox," OxCarre Working Papers 108, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.

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