Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110884
Authors: 
Sinn, Hans-Werner
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5385
Abstract: 
Why have policies aimed at reducing the demand for carbon not succeeded in slowing down global carbon extraction and CO2 emissions, and why have carbon prices failed to increase over the last three decades? This comment argues that this is because of the Green Paradox, i.e. – (the anticipation of sales by resource owners who try to pre-empt the destruction of their markets by green policies.) – Reviewing some of the conditions under which strong and weak versions of the Green Paradox may emerge, it is argued that there is little hope that green replacement technologies will impose hard price constraints that would keep long-run extraction within a fixed carbon budget and that, therefore, even strong versions of the paradox cannot easily be avoided.
Subjects: 
carbon
environmentalism
back stop
oil prices
JEL: 
O13
Q32
Q54
H23
Document Type: 
Working Paper

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