Chapter 5: Global warming: The neglected supply side

Lars Calmfors, Giancarlo Corsetti, Michael Devereux, Gilles Saint-Paul, Hans-Werner Sinn, Jan-Egbert Sturm and Xavier Vives

EEAG Report on the European Economy, 2008, 125-139

Abstract: This chapter addresses one of the most long-term issues for mankind: global warming. The chapter points out that most existing analyses have neglected the supply side. Without a proper analysis of supply-side effects, demand-reducing measures, which are generally regarded as selfevident solutions (such as emission permits, taxes on fossil fuels and the subsidisation of alternative energy sources) risk being ineffective and in fact counterproductive.

Date: 2008
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