CESifo working paper: Energy and Climate Economics 3466
Well-intended policies aimed at reducing greenhouse gas emissions may have unintended undesirable consequences. Recently, a large literature has emerged showing under what conditions this so-called 'Green Paradox' may occur. We review this literature and identify the key mechanisms behind these paradoxical policy outcomes and highlight avenues for future research.
climate policy green paradox non-renewable resources scarcity carbon tax announcement effects implementation lag carbon leakage backstop technology