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Unintended Detrimental Effects of Environmental Policy: The Green Paradox and Beyond

  • Edwin van der Werf
  • Corrado Di Maria

Well-intended policies aimed at reducing greenhouse gas emissions may have unintended undesirable consequences. Recently, a large literature has emerged showing under what conditions this so-called ‘Green Paradox’ may occur. We review this literature and identify the key mechanisms behind these paradoxical policy outcomes and highlight avenues for future research.

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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-2011-05/cesifo1_wp3466.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3466.

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Date of creation: 2011
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Handle: RePEc:ces:ceswps:_3466
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  1. Thomas Eichner & Rüdiger Pethig, 2011. "Carbon Leakage, The Green Paradox, And Perfect Future Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(3), pages 767-805, 08.
  2. Hoel, Michael, 2011. "Is there a green paradox?," Memorandum 13/2010, Oslo University, Department of Economics.
  3. Michael Hoel & Svenn Jensen, 2010. "Cutting Costs of Catching Carbon. Intertemporal effects under imperfect climate policy," Discussion Papers 639, Research Department of Statistics Norway.
  4. Michael Hoel, 2010. "Climate Change and Carbon Tax Expectations," CESifo Working Paper Series 2966, CESifo Group Munich.
  5. Babiker, Mustafa H., 2001. "Subglobal climate-change actions and carbon leakage: the implication of international capital flows," Energy Economics, Elsevier, vol. 23(2), pages 121-139, March.
  6. Di Maria, C. & van der Werf, E.H., 2005. "Carbon Leakage Revisited : Unilateral Climate Policy with Directed Technical Change," Discussion Paper 2005-68, Tilburg University, Center for Economic Research.
  7. Böhringer, Christoph & Fischer, Carolyn & Rosendahl, Knut Einar, 2010. "The Global Effects of Subglobal Climate Policies," Discussion Papers dp-10-48, Resources For the Future.
  8. Rick van der Ploeg & Cees Withagen, 2010. "Is There Really a Green Paradox?," OxCarre Working Papers 035, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  9. Hoel, Michael, 2011. "The supply side of CO2 with country heterogeneity," Memorandum 08/2011, Oslo University, Department of Economics.
  10. Corrado Di Maria & Sjak Smulders & Edwin van der Werf, 2008. "Absolute Abundance and Relative Scarcity: Announced Policy, Resource Extraction, and Carbon Emissions," Working Papers 2008.92, Fondazione Eni Enrico Mattei.
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