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The green paradox and learning-by-doing in the renewable energy sector

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  • Nachtigall, Daniel
  • Rübbelke, Dirk

Abstract

The green paradox conveys the idea that climate policies may have unintended side effects when taking into account the reaction of fossil fuel suppliers. The prospect of carbon taxes being implemented in the future induces resource owners to extract more rapidly which increases present carbon dioxide emissions and accelerates global warming. However, our results suggest that future carbon taxes may decrease present emissions if resource owners face increasing marginal extraction costs and if there is a clean energy source that is a perfect substitute and exhibits learning-by-doing (LBD).

Suggested Citation

  • Nachtigall, Daniel & Rübbelke, Dirk, 2016. "The green paradox and learning-by-doing in the renewable energy sector," Resource and Energy Economics, Elsevier, vol. 43(C), pages 74-92.
  • Handle: RePEc:eee:resene:v:43:y:2016:i:c:p:74-92
    DOI: 10.1016/j.reseneeco.2015.11.003
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    Cited by:

    1. van der Meijden, Gerard & van der Ploeg, Frederick & Withagen, Cees, 2015. "International capital markets, oil producers and the Green Paradox," European Economic Review, Elsevier, vol. 76(C), pages 275-297.
    2. Mark Schopf, 2016. "Unilateral Supply Side Policies and the Green Paradox," Working Papers Dissertations 28, Paderborn University, Faculty of Business Administration and Economics.
    3. Okullo, Samuel & Reynes, F. & Hofkes, M., 2016. "Biofuel Mandating and the Green Paradox," Discussion Paper 2016-024, Tilburg University, Center for Economic Research.
    4. repec:wsi:ccexxx:v:08:y:2017:i:02:n:s2010007817500075 is not listed on IDEAS

    More about this item

    Keywords

    Climate change; Exhaustible resources; Learning-by-doing; Green paradox;

    JEL classification:

    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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