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The green paradox conveys the idea that climate policies may have unintended side effects when taking into account the reaction of fossil fuel suppliers. In particular, carbon taxes that will be implemented in the future induce resource owners to extract more rapidly which increases present...
Persistent link: https://www.econbiz.de/10010375227
The green paradox conveys the idea that climate policies may have unintended side effects when taking into account the reaction of fossil fuel suppliers. In particular, carbon taxes that will be implemented in the future induce resource owners to extract more rapidly which increases present...
Persistent link: https://www.econbiz.de/10010429908
Economic theory suggests that with a pollution externality and learning spillovers related to renewable energy … technologies, the optimal climate policy mix includes an emissions policy and an output subsidy to the learning industry. Instead …
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steady state tax cum subsidy policy implied by a decentralized dynamic optimization approach. …
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