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Going Full Circle: Demand-Side Constraints to the Green Paradox

Author

Listed:
  • Corrado Di Maria
  • Ian A. Lange
  • Edwin van der Werf

Abstract

We argue that the literature on the green paradox has largely ignored the demand side of the resource market, and that this side of the market may mitigate the size of an emissions increase in response to imperfect climate policies. These claims are informed by recent empirical findings. Our arguments lead to clear policy recommendations.

Suggested Citation

  • Corrado Di Maria & Ian A. Lange & Edwin van der Werf, 2013. "Going Full Circle: Demand-Side Constraints to the Green Paradox," CESifo Working Paper Series 4152, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_4152
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp4152.pdf
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    Citations

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    Cited by:

    1. Frederick van der Ploeg & Cees Withagen, 2015. "Global Warming and the Green Paradox: A Review of Adverse Effects of Climate Policies," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 9(2), pages 285-303.
    2. Di Maria, Corrado & Lange, Ian & van der Werf, Edwin, 2014. "Should we be worried about the green paradox? Announcement effects of the Acid Rain Program," European Economic Review, Elsevier, vol. 69(C), pages 143-162.
    3. Hannum, Christopher & Cutler, Harvey & Iverson, Terrence & Keyser, David, 2017. "Estimating the implied cost of carbon in future scenarios using a CGE model: The Case of Colorado," Energy Policy, Elsevier, vol. 102(C), pages 500-511.
    4. Steinkraus, Arne, 2016. "Subsidizing human capital to overcome the green paradox: A demand-side approach," Economics Department Working Paper Series 17, Technische Universit├Ąt Braunschweig, Economics Department.

    More about this item

    Keywords

    green paradox; climate policy; demand side response;

    JEL classification:

    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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