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Supply Side Climate Policy and the Green Paradox

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  • Michael Hoel

Abstract

The focus of the green paradox literature has been either on demand-side climate policies or on effects of technological changes. The present paper addresses the question of whether there also might be some kind of green paradox related to supply-side policies, i.e. policies that per-manently remove some of the carbon resources. The conclusion is that there will no green paradox if supply-side climate policies are aimed at high-cost carbon reserves. If instead low-cost reserves are removed, the possibility that both early and total emissions increase cannot be ruled out. Hence, "wrong" supply-side climate policies may give a supply-side green paradox.

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  • Michael Hoel, 2013. "Supply Side Climate Policy and the Green Paradox," CESifo Working Paper Series 4094, CESifo.
    • Handle: RePEc:ces:ceswps:_4094
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    Cited by:

    1. Taran Fæhn & Cathrine Hagem & Lars Lindholt & Ståle Mæland & Knut Einar Rosendahl, 2017. "Climate Policies in a Fossil Fuel Producing Country: Demand versus Supply Side Policies," The Energy Journal, , vol. 38(1), pages 77-102, January.
    2. Hendrik Ritter & Mark Schopf, 2014. "Unilateral Climate Policy: Harmful or Even Disastrous?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(1), pages 155-178, May.
    3. Michael Lazarus & Harro van Asselt, 2018. "Fossil fuel supply and climate policy: exploring the road less taken," Climatic Change, Springer, vol. 150(1), pages 1-13, September.
    4. Cathrine Hagem & Halvor Briseid Storrøsten, 2019. "Supply‐ versus Demand‐Side Policies in the Presence of Carbon Leakage and the Green Paradox," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(1), pages 379-406, January.
    5. Gilbert Kollenbach, 2019. "Unilateral climate policy and the green paradox: Extraction costs matter," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(3), pages 1036-1083, August.
    6. Christian Beermann, 2015. "Climate Policy and the Intertemporal Supply of Fossil Resources," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 62.
    7. Kollenbach, Gilbert, 2017. "Unilateral climate Policy and the Green Paradox: Extraction Costs matter," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168245, Verein für Socialpolitik / German Economic Association.
    8. Philipp M. Richter & Roman Mendelevitch & Frank Jotzo, 2018. "Coal taxes as supply-side climate policy: a rationale for major exporters?," Climatic Change, Springer, vol. 150(1), pages 43-56, September.
    9. Steinkraus, Arne, 2016. "Subsidizing human capital to overcome the green paradox: A demand-side approach," Economics Department Working Paper Series 17, Technische Universität Braunschweig, Economics Department.

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    More about this item

    Keywords

    climate; green paradox;

    JEL classification:

    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • 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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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