Recent developments suggest that well-intended climate policies--including carbon taxes and subsidies for renewable energy—might not accomplish what policy makers intend. Hans-Werner Sinn has described a “green paradox,” arguing that these policies could hasten global warming by...

The Green Paradox states that, in the absence of a tax on CO2 emissions, subsidizing a renewable backstop such as solar or wind energy brings forward the date at which fossil fuels become exhausted and consequently global warming is aggravated. We shed light on this issue by solving a model of...

Die Dissertation fokussiert auf suboptimale, aber politisch realistische(re) Klimaschutzmassnahmen. Sie benutzt analytische und kalibrierte numerische Modelle, um das Grüne Paradoxon, CO2 leakage und die Frage zwischen einer preislichen (CO2-Steuern) und einer mengenmässigen...

A rapidly rising carbon tax leads to faster extraction of fossil fuels and accelerates global warming. We analyze how general equilibrium effects operating through the international capital market affect this Green Paradox. In a two-region, two-period world with identical homothetic preferences...