Unintended Detrimental Effects of Environmental Policy: The Green Paradox and Beyond

Edwin van der Werf () and Corrado Di Maria

No 3466, CESifo Working Paper Series from CESifo

Abstract: Well-intended policies aimed at reducing greenhouse gas emissions may have unintended undesirable consequences. Recently, a large literature has emerged showing under what conditions this so-called ‘Green Paradox’ may occur. We review this literature and identify the key mechanisms behind these paradoxical policy outcomes and highlight avenues for future research.

Keywords: climate policy; green paradox; non-renewable resources; scarcity; carbon tax; announcement effects; implementation lag; carbon leakage; backstop technology (search for similar items in EconPapers)
JEL-codes: F18 Q31 Q41 Q42 Q54 Q58 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_3466

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