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, edwin.vanderwerf@wur.nl Corrado Di Maria, University of Birmingham, Department of Economics, United Kingdom, 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
F18Q31Q38Q41Q42Q54Q58
Climate policyGreen paradoxNonrenewable resourcesScarcityCarbon taxAnnouncement effectsImplementation lagCarbon leakageBackstop 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