scholarly journals Supply‐ versus Demand‐Side Policies in the Presence of Carbon Leakage and the Green Paradox

2018 ◽  
Vol 121 (1) ◽  
pp. 379-406 ◽  
Author(s):  
Cathrine Hagem ◽  
Halvor Briseid Storrøsten
2020 ◽  
Vol 20 (1) ◽  
pp. 25-44
Author(s):  
Sahin Akkaya ◽  
Ufuk Bakkal

AbstractResearch background: Insufficient global cooperation in carbon pricing against global warming has the risk of global carbon emissions rise because of carbon leakage. The effect of a carbon tax on the present supply of fossil fuels is also valuable in regard to global carbon emissions.Purpose: The purpose of this study is to gain more insights into the effects of carbon leakage along with the green paradox on global carbon emissions by reviewing the relevant literature.Research methodology: We provide the problem linked to carbon leakage and the green paradox in the introduction. Then, the effects of carbon leakage and the green paradox on global carbon emissions are elaborated separately. Finally the mutual effects of carbon leakage and the green paradox are reviewed comprehensively.Results: It is seen that various factors like interest rates, fossil fuel extraction costs, the fossil fuel reserves to be discovered in the future and carbon tax incidence are equally important determinants in regard to global carbon emissions.Novelty: This study provides an insight into the mutual effects of carbon leakage and the green paradox on global carbon emissions by reviewing the primary literature in the field.


2018 ◽  
Vol 17 (2) ◽  
pp. 113-139 ◽  
Author(s):  
Partha Sen

The effects of a unilateral cut in emissions (e.g., by Annexure 1 countries in Kyoto) are analysed in a dynamic two-country two-commodity model. If the fossil fuel is priced at marginal cost, then a unilateral cut reduces total emissions (the carbon leakage is less than 100%). But if the fuel is priced above marginal cost, then a ‘green paradox’ appears, that is, the price of the fuel will fall until its use (over time) exhausts the entire stock. Here, a unilateral policy is self-defeating and it is necessary to get binding commitments on fossil fuel use from all the countries. The production and trade implications for the participant and non-participant countries are analysed. JEL: Q4, Q50, Q54, Q56


2016 ◽  
Vol 6 (4) ◽  
pp. 1 ◽  
Author(s):  
Arne Steinkraus

<p>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 functionmay 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.</p>


2011 ◽  
Vol 52 (3) ◽  
pp. 767-805 ◽  
Author(s):  
Thomas Eichner ◽  
Rüdiger Pethig
Keyword(s):  

2013 ◽  
Author(s):  
Corrado Di Maria ◽  
Ian Lange ◽  
Edwin van der Werf

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