Public policies against global warming: a supply side approach

By H. Sinn. 2008

1,017 citations recorded by the source corpus.

The countries that have ratified the Kyoto Protocol have pledged to limit global warming by reducing the demand for fossil fuels. But what about supply? If suppliers do not react, demand reductions by a subset of countries are ineffective. They simply depress the world price of carbon and induce the environmental sinners to consume what the Kyoto countries have economized on. Even worse, if suppliers feel threatened by a gradual greening of economic policies in the Kyoto countries that would damage their future prices; they will extract their stocks more rapidly, thus accelerating global warming. The paper discusses the remaining policy options against global warming from an intertemporal supply-side perspective.

Subfields: Economics and Econometrics, Management, Monitoring, Policy and Law, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/f0d655714b9617b42a924d6c81c046c81d8f1a8a

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Citations in the corpus

An Introduction to the Green Paradox: The Unintended Consequences of Climate Policies (2015, background): “The recent debate about the green paradox was initially triggered by Sinn (2008), who focused on one specific reason for this paradoxical outcome: the effect of climate policies on the long-run profits (more specifically, scarcity rents) that owners of fossil resources expect to earn from selling…”
Too Much Coal, Too Little Oil (2012, background): “Damages from CO2 emissions can be modelled through a negative externality in production (cf., Heal, 1985; Sinn, 2008ab), but we suppose that they directly damage social 5 Our paper is related to earlier work on the Green Paradox by Gerlagh (2011).”
Renewable Energy Subsidies: Second-Best Policy or Fatal Aberration for Mitigation? (2011, neutral): “An intertemporal fossil resource extraction sector is integrated to account for possible supply-side responses to climate policies as motivated by Sinn (2008b).”
Climate Change Mitigation Options and Directed Technical Change: A Decentralized Equilibrium Analysis (2011, background): “Second, (40) and (42) are identical to (33) and (35), respectively.”
Imperfect Environmental Policy and Polluting Emissions: The Green Paradox and Beyond (2012, background): “Finally, policies can fall short of being fully optimal also when they fail to be adopted by everyone at the same time; Sinn (2008) refers to ‘‘demand reductions by a subset of countries’’.”
Growth Theory and "Green Growth" (2014, neutral): “Technical change can be represented in growth analysis as an increase over time in 13 This concept was introduced by Sinn (2008a, 2008b), to point at the danger of too fast increasing carbon taxes or subsidies on renewables.”