Global Warming and Endogenous Technological Change: Revisiting the Green Paradox
How to control and limit climate change caused by a growing use of fossil fuels are among the most pressing policy challenges facing the world today. The green paradox argues that carbon taxes can exacerbate global warming problem because firms have the incentive to bring forward the sale of fossil fuels. This paper shows that when technological progress allows the extraction costs of fossil fuels to be reduced over time, and a positive R&D subsidy is paid, a growing carbon tax reveals a welfare maximizing policy.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.oxcarre.ox.ac.uk/Email:
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.:
- Reyer Gerlagh & Snorre Kverndokk & Knut Rosendahl, 2009.
"Optimal Timing of Climate Change Policy: Interaction Between Carbon Taxes and Innovation Externalities,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 43(3), pages 369-390, July.
- Gerlagh, R. & Kverndokk, S. & Rosendahl, K.E., 2009. "Optimal timing of climate change policy : Interaction between carbon taxes and innovation externalities," Other publications TiSEM 4312dde8-f323-4ee2-9764-a, School of Economics and Management.
- van der Ploeg, Frederick & Withagen, Cees, 2012.
"Is there really a green paradox?,"
Journal of Environmental Economics and Management,
Elsevier, vol. 64(3), pages 342-363.
- Frederick Van der Ploeg & Cees A. Withagen, 2010. "Is There Really a Green Paradox?," CESifo Working Paper Series 2963, CESifo Group Munich.
- 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.
- Aghion, P. & Howitt, P., 1989.
"A Model Of Growth Through Creative Destruction,"
UWO Department of Economics Working Papers
8904, University of Western Ontario, Department of Economics.
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- repec:ner:tilbur:urn:nbn:nl:ui:12-3777015 is not listed on IDEAS
- Sinn, Hans-Werner, 2008.
"Public policies against global warming: A supply side approach,"
Munich Reprints in Economics
19638, University of Munich, Department of Economics.
- Hans-Werner Sinn, 2008. "Public policies against global warming: a supply side approach," International Tax and Public Finance, Springer, vol. 15(4), pages 360-394, August.
- William Brock & M. Taylor, 2010.
"The Green Solow model,"
Journal of Economic Growth,
Springer, vol. 15(2), pages 127-153, June.
- Peretto, Pietro F., 1996.
"Technological Change and Population Growth,"
96-28, Duke University, Department of Economics.
- Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
- Cozzi Guido, 2007. "The Arrow Effect under Competitive R&D," The B.E. Journal of Macroeconomics, De Gruyter, vol. 7(1), pages 1-20, January.
- Michele Boldrin & David K Levine, 2002.
"The Case Against Intellectual Property,"
Levine's Working Paper Archive
618897000000000003, David K. Levine.
- Jones, Charles I, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 495-525, May.
- Bloom, Nick & Griffith, Rachel & Van Reenen, John, 2002.
"Do R&D tax credits work? Evidence from a panel of countries 1979-1997,"
Journal of Public Economics,
Elsevier, vol. 85(1), pages 1-31, July.
- Nicholas Bloom & Rachel Griffith & John Van Reenen, 2007. "Do R&D Tax Credits Work? Evidence from a Panel of Countries 1979-1997," Discussion Papers 07-020, Stanford Institute for Economic Policy Research.
- Jakob Madsen, 2008.
"Semi-endogenous versus Schumpeterian growth models: testing the knowledge production function using international data,"
Journal of Economic Growth,
Springer, vol. 13(1), pages 1-26, March.
- Jakob B. Madsen & EPRU & FRU, 2007. "Semi-Endogenous Versus Schumpeterian Growth Models: Testing The Knowledge Production Function Using International Data," Monash Economics Working Papers 26-07, Monash University, Department of Economics.
- Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
- Jon Strand, 2007. "Technology Treaties and Fossil-Fuels Extraction," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 129-142.
When requesting a correction, please mention this item's handle: RePEc:oxf:oxcrwp:068. 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: (Celia Kingham)
If references are entirely missing, you can add them using this form.