By promising to reduce fossil fuel demand in the future, some claim that climate policies will induce supply side responses today; firms will pump out emissions now before demand restrictions tighten. However, this column argues that the ‘green paradox’ is a red herring. Evidence from US coal prices suggests that, in industrialised countries, there is little danger of an increase in domestic emissions in response to imperfect climate policies.
|Media of output||Online|
|Publication status||Published - 2013|
di Maria, C. (Author), Lange, I. (Author), & van der Werf, E. (Author). (2013). Imperfect climate policy unlikely to increase domestic emissions. Web publication/site, www.voxeu.org. Retrieved from http://www.voxeu.org/article/imperfect-climate-policy-unlikely-increase-domestic-emissions