Supply-Side Climate Policy and the Green Paradox
Supply-Side Climate Policy and the Green Paradox
The focus of the green paradox literature has been either on demand-side climate policies or on effects of technological changes. The present chapter addresses the question of whether there also might be some kind of green paradox related to supply-side climate policies. Fossil fuels are non-renewable resources, and the term supply-side climate policy is used for policies that permanently remove some of the carbon resources. The main conclusion of the chapter is that there will no green paradox if supply-side climate policies are aimed at removing high-cost carbon reserves. If instead low-cost reserves are removed, the possibility that both early and total emissions increase cannot be ruled out. Hence, "wrong" supply-side climate policies may give a supply-side green paradox, since such policies may accelerate climate change.
Keywords: Green Paradox, climate, climate policy, supply-side climate policy, non-renewable resources, fossil fuels, carbon resources
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