Biofuels Subsidies and the Green Paradox
This 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.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
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.:
- Hans-Werner Sinn, 2007.
"Public Policies against Global Warming,"
CESifo Working Paper Series
2087, CESifo Group Munich.
- 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.
- Michael Hoel, 2009.
"Bush Meets Hotelling: Effects of Improved Renewable Energy Technology on Greenhouse Gas Emissions,"
2009.1, Fondazione Eni Enrico Mattei.
- Michael Hoel, 2008. "Bush Meets Hotelling: Effects of Improved Renewable Energy Technology on Greenhouse Gas Emissions," CESifo Working Paper Series 2492, CESifo Group Munich.
- Murray C. Kemp & Ngo Van Long, 2007. "Extracting Several Resource Deposits of Unknown Size: Optimal Order," CIRANO Working Papers 2007s-10, CIRANO.
- 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.
- 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.
- 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.
- 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.
- Sinclair, Peter J N, 1992. "High Does Nothing and Rising Is Worse: Carbon Taxes Should Keep Declining to Cut Harmful Emissions," The Manchester School of Economic & Social Studies, University of Manchester, vol. 60(1), pages 41-52, March.
- 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.
- Ujjayant Chakravorty & Marie-H�l�ne Hubert & Linda N�stbakken, 2009.
"Fuel Versus Food,"
Annual Review of Resource Economics,
Annual Reviews, vol. 1(1), pages 645-663, 09.
- Subhayu Bandyopadhyay & Sumon Bhaumik & Howard J. Wall, 2009.
"Biofuel subsidies: an open-economy analysis,"
2009-053, Federal Reserve Bank of St. Louis.
- Robert M. Solow & Frederic Y. Wan, 1976. "Extraction Costs in the Theory of Exhaustible Resources," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 359-370, Autumn.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_2960. See general 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.