Uncertain Climate Policy and the Green Paradox

Sjak Smulders (), Yacov Tsur and Amos Zemel

No 93129, Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management

Abstract: Unintended consequences of announcing a climate policy well in advance of its implementation have been studied in a variety of situations. We show that a phenomenon akin to the so-called “Green- Paradox” holds also when the policy implementation date is uncertain. Governments are compelled, by international and domestic pressure, to demonstrate an intention to reduce greenhouse gas emissions. Taking actual steps, such as imposing a carbon tax on fossil energy, is a different matter altogether and depends on a host of political considerations. As a result, economic agents often consider the policy implementation date to be uncertain. We show that in the interim period between the policy announcement and its actual implementation the emission of green-house gases increases vis-`a-vis business-as-usual.

Keywords: Environmental Economics and Policy; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 25
Date: 2010
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (6)

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Related works:
Chapter: Uncertain Climate Policy and the Green Paradox (2014)
Working Paper: Uncertain climate policy and the green paradox (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:huaedp:93129

DOI: 10.22004/ag.econ.93129

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