Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30713
Authors: 
Grafton, R. Quentin
Kompas, Tom
Ngo Van Long
Year of Publication: 
2010
Series/Report no.: 
CESifo Working Paper 2960
Abstract: 
This paper develops sufficient conditions under which the Weak Green Paradox may (and may not) hold in terms of subsidies for biofuel production such that the supply-side responses by fossil fuel producers may more than offset the substitution to biofuels. Analytical results are derived and numerical simulations show that, under a wide range of parameter values, biofuel subsidies will increase the rate of extraction of fossil fuels in the short and medium term, and possibly bring climate-change damages closer to the present.
Subjects: 
biofuels subsidies
the Green Paradox
JEL: 
Q54
Q42
Q30
Document Type: 
Working Paper

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