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Green industrial policy: trade and theory AgEcon
Karp, Larry S.; Stevenson, Megan.
This paper studies the reality and the potential for green industrial policy. We provide a summary of the green industrial policies, broadly understood, for five countries. We then consider the relation between green industrial policies and trade disputes, emphasizing the Brazil-US dispute involving ethanol and the broader US-China dispute. The theory of public policy provides many lessons for green industrial policy. We select four of these lessons, involving the Green Paradox, the choice of quantities versus prices with endogenous investment, the coordination issues arising from emissions control, and the ability of green industrial policies to promote cooperation in reducing a global public bad like carbon emissions.
Tipo: Working Paper Palavras-chave: Green industrial policy; Trade conflicts; Green paradox; Asymmetric information; Coordination games; Participation games; Institutional and Behavioral Economics; Research and Development/Tech Change/Emerging Technologies; F13; F18; H21; H23.
Ano: 2012 URL: http://purl.umn.edu/123637
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Uncertain Climate Policy and the Green Paradox AgEcon
Smulders, Sjak; Tsur, Yacov; Zemel, Amos.
Unintended consequences of announcing a climate policy well in advance of its implementation have been studied in a variety of situations. We show that a phenomenon akin to the so-called “Green- Paradox” holds also when the policy implementation date is uncertain. Governments are compelled, by international and domestic pressure, to demonstrate an intention to reduce greenhouse gas emissions. Taking actual steps, such as imposing a carbon tax on fossil energy, is a different matter altogether and depends on a host of political considerations. As a result, economic agents often consider the policy implementation date to be uncertain. We show that in the interim period between the policy announcement and its actual implementation the emission of green-house...
Tipo: Working or Discussion Paper Palavras-chave: Climate policy; Carbon tax; Uncertainty; Green paradox; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/93129
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