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Announcing is Bad, Delaying is Worse: Another Pitfall in Well-Intended Climate Policy

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  • Darko Jus
  • Volker Meier

Abstract

It is frequently observed that the implementation of green policies is delayed compared to the initial announcement. Considering a setting with a representative monopolist extracting a non-renewable resource, we demonstrate that announcing a green policy, but then delaying its implementation, is associated with a larger cumulative extraction at any point in time than announcing a late implementation of this policy at the outset.

Suggested Citation

  • Darko Jus & Volker Meier, 2012. "Announcing is Bad, Delaying is Worse: Another Pitfall in Well-Intended Climate Policy," CESifo Working Paper Series 3844, CESifo.
    • Handle: RePEc:ces:ceswps:_3844
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    References listed on IDEAS

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    Cited by:

    1. Haensel, Maria & Scheinpflug, Luzie & Riebl, Rebekka & Lohse, Eva Julia & Röder, Norbert & Koellner, Thomas, 2023. "Policy instruments and their success in preserving temperate grassland: Evidence from 16 years of implementation," Land Use Policy, Elsevier, vol. 132(C).

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    More about this item

    Keywords

    climate policy; carbon taxation; Kyoto Protocol; optimal control;
    All these keywords.

    JEL classification:

    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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