Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/146510 
Year of Publication: 
2016
Series/Report no.: 
Economics Department Working Paper Series No. 17
Publisher: 
Technische Universität Braunschweig, Institut für Volkswirtschaftslehre, Braunschweig
Abstract: 
This paper shifts the perspective of the recent green paradox literature towards the demand side. Based on a simple model, I show that a subsidy on input factors in a Cobb-Douglas production function may contribute substantially to postponing resource extraction into the future and, thereby, to limit the future costs of climate change. Specifically, indirect subsidies on human capital, such as investments in education, are plausible policy options to mitigate carbon dioxide emissions because it is robust to short-sighted incentives on the part of politicians and resource owners.
Subjects: 
Climate Change
Green Paradox
Subsidy
Demand-Side
JEL: 
Q38
Q54
Q58
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.