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Climate policy, resource owners’ anticipations and the green paradox: model set-up and empirical considerations

Schneider, Nicolas (2022) Climate policy, resource owners’ anticipations and the green paradox: model set-up and empirical considerations. Journal of Environmental Economics and Policy, 12 (1). pp. 33-43. ISSN 2160-6544

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Identification Number: 10.1080/21606544.2022.2071344

Abstract

With the acceleration of environmental commitments, the Green Paradox has been taking centre stage in the climate debate. In the standard Hotelling (1936) framework, producers may interpret environmental regulations as direct threats to resource scarcity rents. They compensate the future losses of revenues by forward shifting the extraction decision to the present period. In this paper, we defend the intuition behind which the anticipation effects of fossil producers are non-negligible and cannot be ignored by environmental planners. However, facing the conflicting evidence and theoretical underpinnings arising from the most recent literature, we argue that their effective impacts on climate targets tend to be over-estimated and might become smaller under reasonable assumptions and identified conditions. Accordingly, a set of recommendations are provided to internalize such inferences within upcoming climate measures.

Item Type: Article
Official URL: https://www.tandfonline.com/journals/teep20
Additional Information: © 2022 Journal of Environmental Economics and Policy Ltd.
Divisions: Geography & Environment
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
G Geography. Anthropology. Recreation > G Geography (General)
Date Deposited: 01 Jun 2022 16:15
Last Modified: 28 Mar 2024 08:45
URI: http://eprints.lse.ac.uk/id/eprint/115275

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