Di Maria, Corrado Lange, Ian A. van der Werf, Edwin
Year of Publication:
CESifo Working Paper 4152
We argue that the literature on the green paradox has largely ignored the demand side of the resource market, and that this side of the market may mitigate the size of an emissions increase in response to imperfect climate policies. These claims are informed by recent empirical findings. Our arguments lead to clear policy recommendations.