International Review of Environmental and Resource Economics > Vol 6 > Issue 2

Imperfect Environmental Policy and Polluting Emissions: The Green Paradox and Beyond

Edwin van der Werf, Wageningen University, Environmental Economics and Natural Resources, The Netherlands AND CESifo, Munich, Germany, edwin.vanderwerf@wur.nl , Corrado Di Maria, University of Birmingham, Department of Economics, United Kingdom AND CESifo, Munich, Germany, c.dimaria@bham.ac.uk
 
Suggested Citation
Edwin van der Werf and Corrado Di Maria (2012), "Imperfect Environmental Policy and Polluting Emissions: The Green Paradox and Beyond", International Review of Environmental and Resource Economics: Vol. 6: No. 2, pp 153-194. http://dx.doi.org/10.1561/101.00000050

Publication Date: 10 Mar 2012
© 2012 E. van der Werf and C. Di Maria
 
Subjects
Environmental Economics
 
Keywords
F18, Q31, Q38, Q41, Q42, Q54, Q58
Climate policy, Green paradox, Nonrenewable resources, Scarcity, Carbon tax, Announcement effects, Implementation lag, Carbon leakage, Backstop technology
 

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In this article:
1 Introduction 
2 Carbon Price Paths 
3 Supporting Alternative Energy Technologies 
4 Announcing Climate Policy in Advance 
5 Unilateral Carbon Pricing and International Carbon Leakage 
6 Concluding Remarks 
References 

Abstract

Well-intended policies aimed at reducing greenhouse gas emissions may have unintended undesirable consequences. Recently, a large literature has emerged showing that such a 'green paradox' may occur in response to particular policies. We review this literature and identify four different imperfect policy approaches that may induce a green paradox. We discuss under what conditions a green paradox may occur and highlight avenues for future research.

DOI:10.1561/101.00000050