Going Full Circle: Demandside Constraints to the Green Paradox

Maria, Corrado Di; Lange, Ian; Werf, Edwin van der

doi:10.7551/mitpress/9780262027885.003.0010

Cited by 10 publications

(5 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Ideally, one then has mine of well level data on the Hotelling rent before and after the policy but such data are hard to get. One rare study finds that the announcement effects of the 1990 Clean Air Act Amendments (CAAA) has led to large drops in the price of high sulfur program up to the implementation of the Acid Rain Program in 1995 but this has not led to increased production of coal-fired plants , 2014a, 2014b. 19 Hence, the empirical evidence on the Green Paradox is at best mixed.…”

Section: Discussionmentioning

confidence: 99%

“…Di Maria et al (2014a) have argued that the literature on the Green Paradox emphasizes the supply side of fossil fuel markets and accounts for marginal extraction costs, but largely ignores demand side issues, such as oil being used mainly for transportation and coal being used mainly for electricity generation.…”

Section: Impact Of Substitutability Of Energy Sources On the Green Paradoxmentioning

confidence: 99%

See 1 more Smart Citation

Global Warming and the Green Paradox: A Review of Adverse Effects of Climate Policies

Ploeg¹,

Withagen²

2015

Review of Environmental Economics and Policy

View full text Add to dashboard Cite

This article examines the possible adverse effects of well-intended climate policies. A weak Green Paradox arises if the announcement of a future carbon tax or a sufficiently fast rising carbon tax encourages fossil fuel owners to extract reserves more aggressively, thus exacerbating global warming.We argue that such policies may also encourage more fossil fuel to be locked in the crust of the earth, which can offset the adverse effects of the weak Green Paradox. We show that a subsidy on clean renewables has similar weak Green Paradox effects. Green welfare (the complement of environmental damages) drops (i.e., the strong Green Paradox) if the beneficial climate effects of locking up more fossil fuel do not outweigh the short-run weak Green Paradox effects. Neither the weak nor the strong Green Paradox occurs for the first-best Pigouvian carbon tax. We also pay attention to dirty backstops, spatial carbon leakage and green innovation.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Impact Of Substitutability Of Energy Sources On the Green Paradoxmentioning

confidence: 99%

Global Warming and the Green Paradox: A Review of Adverse Effects of Climate Policies

Ploeg¹,

Withagen²

2015

Review of Environmental Economics and Policy

View full text Add to dashboard Cite

show abstract

“…Another potentially significant leakage channel, which we do not model, plays out through energy markets. As policy lowers demand for coal in the regulated region, it also lowers the price of coal elsewhere, potentially increasing demand for coal outside the regulated jurisdiction (Di Maria et al 2013). This channel tends to be important when the supply elasticity of coal is small-but in reality the supply elasticity for coal is thought to be large because marginal costs tend to be roughly constant (Di Maria et al 2013).…”

Section: The Implied Carbon Pricementioning

confidence: 99%

Estimating the implied cost of carbon in future scenarios using a CGE model: The Case of Colorado

et al. 2017

View full text Add to dashboard Cite

Using Colorado as a case study, we develop a state-level computable general equilibrium (CGE) model that reflects the roles of coal, natural gas, wind, solar, and hydroelectricity in supplying electricity. We focus on the economic impact of implementing Colorado's existing Renewable Portfolio Standard, updated in 2013. This requires that 25% of state generation come from qualifying renewable sources by 2020. We evaluate the policy under a variety of assumptions regarding wind integration costs and assumptions on the persistence of federal subsidies for wind. Specifically, we estimate the implied price of carbon as the carbon price at which a statelevel policy would pass a state-level cost-benefit analysis, taking account of estimated greenhouse gas emission reductions and ancillary benefits from corresponding reductions in criteria pollutants. Our findings suggest that without the Production Tax Credit (federal aid), the state policy of mandating renewable power generation (RPS) is costly to state actors, with an implied cost of carbon of about $17 per ton of CO2 with a 3% discount rate. Federal aid makes the decision between natural gas and wind nearly cost neutral for Colorado.

show abstract

“…Model (1) 9 However, if the tax path is announced in advance, the issue of a Green Paradox may be raised, for instance if the tax is introduced in a concerted move with other countries (see Di Maria et al 2013 for a discussion). estimates the eect of a vector of independent variables x on the probability of accepting the carbon tax (or the climate contribution).…”

Section: Carbon Tax Acceptabilitymentioning

confidence: 99%

Paying Enough Taxes Already? Testing the Acceptability of Carbon Taxes with Survey Data

Carattini

Baranzini

2014

SSRN Journal

View full text Add to dashboard Cite

In spite of economist's claims, climate policy instruments such as carbon taxes are rarely implemented. This paper analyzes the drivers of carbon taxes acceptability in the semi-direct democratic context of Geneva, Switzerland. Based on a sample of more than 300 individuals, we assess the effect on acceptability of socioeconomic characteristics, environmental attitudes, social norms as well as individual's perceptions of carbon taxes advantages and disadvantages. We also show that policy design matters for acceptability, in particular earmarking for environmental purposes, and find evidence of an effect of labeling, "climate contribution" leading under some circumstances to larger acceptability than "carbon tax". We infer that proper policy design coupled with effective communication on the effects of carbon taxes may lead to a substantial improvement in acceptability.

show abstract

Going Full Circle: Demandside Constraints to the Green Paradox

Cited by 10 publications

References 24 publications

Global Warming and the Green Paradox: A Review of Adverse Effects of Climate Policies

Global Warming and the Green Paradox: A Review of Adverse Effects of Climate Policies

Estimating the implied cost of carbon in future scenarios using a CGE model: The Case of Colorado

Paying Enough Taxes Already? Testing the Acceptability of Carbon Taxes with Survey Data

Contact Info

Product

Resources

About