Supply Side Climate Policy and the Green Paradox

26 Pages Posted: 12 Feb 2013

See all articles by Michael Hoel

Michael Hoel

University of Oslo; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Date Written: January 31, 2013

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.

Keywords: climate, green paradox

JEL Classification: Q300, Q380, Q540, Q580

Suggested Citation

Hoel, Michael, Supply Side Climate Policy and the Green Paradox (January 31, 2013). CESifo Working Paper Series No. 4094, Available at SSRN: https://ssrn.com/abstract=2214897 or http://dx.doi.org/10.2139/ssrn.2214897

Michael Hoel (Contact Author)

University of Oslo ( email )

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CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

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Germany

HOME PAGE: http://www.CESifo.de

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