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Global warming and the green paradox: a review of adverse effects of climate policies

Abstract:

This article examines the possible adverse effects of well-intended climate policies. A weak Green Paradox arises if the announcement of a future carbon tax or a sufficiently fast rising carbon tax encourages fossil fuel owners to extract reserves more aggressively, thus exacerbating global warming. We argue that such policies may also encourage more fossil fuel to be locked in the crust of the earth, which can offset the adverse effects of the weak Green Paradox. We show that a subsidy on cl...

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Publication status:
Published

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Publisher:
University of Oxford
Series:
OxCarre Papers
Publication date:
2013-07-30
Paper number:
116
Keywords:
Pubs id:
1143746
Local pid:
pubs:1143746
Deposit date:
2020-12-15

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