Carbon Leakage, the Green Paradox and Perfect Future Markets

By Thomas Eichner, Rüdiger Pethig. Social Science Research Network, 2011

196 citations recorded by the source corpus.

Policies of lowering carbon demand may aggravate rather than alleviate climate change (green paradox). In a two-period three-country general equilibrium model with finite endowment of fossil fuel one country enforces an emissions cap in the first or second period. When that cap is tightened the extent of carbon leakage depends on the interaction of various parameters and elasticities. Conditions for the green paradox are specified. All determinants of carbon leakage resulting from tightening the first-period cap work in opposite direction when the second-period cap is tightened. Tightening the second-period cap does not necessarily lead to the green paradox.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/e3e51acea409d5e44405b440de5f7e3aa86ae843

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Citations in the corpus

Substitution between biofuels and fossil fuels: is there a green paradox? (2012, background): “Even though in general the sign of (12) is uncertain, the sign of its integral may be determinate or at least calculated numerically.”
Imperfect Environmental Policy and Polluting Emissions: The Green Paradox and Beyond (2012, methodology): “Eichner and Pethig (2011) show the conditions under which a green”
Too Much Coal, Too Little Oil (2012, unknown): “Finally, one could study international aspects such as carbon leakage and ways to sustain international cooperation within the context of a multi-country version of our model (cf., Hoel, 2008; Eichner and Pethig, 2010).”
An Introduction to the Green Paradox: The Unintended Consequences of Climate Policies (2015, background): “How do spatial and intertemporal carbon leakage interact? Eichner and Pethig (2011) examine this issue in a model with two periods, today and tomorrow, and three countries: one sells fossil fuels and two consume it. One of the consuming countries implements a climate policy, while the other does not”
Energy Conservation More Effective With Rebound Policy (2011, background): “Eichner and Pethig (2009) refer to the “green paradox”, meaning that policies aimed at curbing GHG emissions may aggravate rather than alleviate global warming.”
Global Warming and the Green Paradox: A Review of Adverse Effects of Climate Policies (2015, background): “Eichner and Pethig (2011) focus on carbon leakage and the Green Paradox in a two-period model with three (groups of) countries: a CO2-abating country that uses a system of tradable CO2 permits, a country with no climate policy which does not abate CO2, and a country that exports fossil fuel, which i”