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Climate Policy and Nonrenewable Resources – The Green Paradox and Beyond - MIT Press Scholarship Online
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Climate Policy and Nonrenewable Resources: The Green Paradox and Beyond

Karen Pittel, Frederick van der Ploeg, and Cees Withagen


Too rapidly rising carbon taxes or the introduction of subsidies for renewable energies induce owners of fossil fuel reserves to increase their extraction rates for fear of their reserves becoming worthless. Fossil fuel use is thus brought forward. The resulting acceleration of global warming and counter-productivity of well-intended climate policy has been coined the Green Paradox by Hans-Werner Sinn and is the intertemporal analogue of the often discussed problem of carbon leakage in the global economy. How robust are these insights? The answer is it depends. These policies typically induce ... More

Keywords: Green Paradox, non-renewable resources, climate policy, clean backstops, dirty backstops, elasticity of substitution

Bibliographic Information

Print publication date: 2014 Print ISBN-13: 9780262027885
Published to MIT Press Scholarship Online: January 2015 DOI:10.7551/mitpress/9780262027885.001.0001


Affiliations are at time of print publication.

Karen Pittel, editor
Munich University

Frederick van der Ploeg, editor

Cees Withagen, editor

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1 The Green Paradox: A Mirage?

Karen Pittel, Rick van der Ploeg, and Cees Withagen

I Extraction Costs

3 The Green Paradox as a Supply Phenomenon

Julien Daubanes and Pierre Lasserre

II Technology, Innovation, and SubstitutabilityI

III Timing, Announcement Effects, and Time Consistency

8 Does a Future Rise in Carbon Taxes Harm the Climate?

Florian Habermacher and Gebhard Kirchgässner

10 Going Full Circle: Demandside Constraints to the Green Paradox

Corrado Di Maria, Ian Lange, and Edwin van der Werf

IV Empirics and Quantification

11 Quantifying Intertemporal Emissions Leakage

Carolyn Fischer and Stephen Salant

End Matter