Abstract
The green paradox describes an undesirable and socially inefficient phenomenon caused by the expansionary reactions of the Supply as a response to the various mechanisms that combat climate change. This article seeks to understand and aggregate the different drivers of this phenomenon portrayed in the literature, as well the empirical evidence associated and the proposed solutions. For this purpose, compilation and systematization of the various scientific contributions up to date in this context have been elaborated, which led to the identification of five major drivers of the paradox: (i) Environmental Taxes, (ii) Green Supports, (iii) Uncertain Property Rights, (iv) Temporal Lag and (v) Emission limits (Cap). Moreover, we evaluate its effective impact on the European scenario in the last two decades, and we have obtained evidences that the hiatus in the implementation of the European emission cap mechanism has generated a strong green paradox. Moreover, a robust reflection regarding the economic and environmental adequacy of green supports should be considered due to its questionable net benefits. Lastly, we offer some recommendations of public environmental policies that escape the paradoxical phenomenon, through the enunciation of the conditionalities of these provocateurs.