Is There a Green Paradox?
By Michael Hoel. Social Science Research Network, 2010
110 citations recorded by the source corpus.
A sufficiently rapidly rising carbon tax may increase near-term emissions compared with the case of no carbon tax. Even so, such a carbon tax path may reduce total costs related to climate change, since the tax may reduce total carbon extraction. A government cannot commit to a specific carbon tax rate in the distant future. For reasonable assumptions about expectation formation, a higher present carbon tax will reduce near-term carbon emissions. Moreover, whatever the expectations about future tax rates are, near-term emissions will decline for a sufficiently high carbon tax. However, if the near-term tax rate for some reason is set below its optimal level, increased concern for the climate may change taxes in a manner that increases near-term emissions.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/099c08dbcb65574cb26ae457cb3876e4eab22d4b
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
Citations in the corpus
- An empirical analysis of the green paradox in China: From the perspective of fiscal decentralization (2017, background): “(a) Unreasonable set of carbon taxes (Edenhofer and Kalkuhl, 2011; Hoel, 2010): A carbon tax that increases at a rate higher than the market rate of interest will accelerate the exploitation of fossil fuels in the near future, culminating in an increase in carbon emissions and exacerbating global…”