The Green Paradox is a term that refers to an undesirable effect of environmental measures.
Politicians believe that environmentally-friendly legislation that lowers demand for fossil fuels can reduce carbon dioxide emissions and thus protect the climate. But how is that supposed to work? We cannot cancel out the worldwide supply of carbon with our energy-saving policy. We are only partially reducing demand and are thus lowering the increase in world market prices, but no more than that. We are presumably only making the problem worse. The resources available still have to be extracted if they are to be used. If we threaten resource owners with ever more environmentally-friendly policy that will destroy their future business, they preempt the threat and extract their resources even faster. Instead of slowing down climate change, we accelerate it. That is the green paradox.
The Green Paradox - Theses on Climate Change
Organizer: Bavarian Radio, BRalpha, Ifo Institute for Economic Research, Munich, University of Munich
Venue: Ifo Institute for Economic Research, Poschingerstrasse 5, 81679 Munich, Ludwig Erhard Room
Refereed scientific monographs
Articles in refereed journals
"The Green Paradox: A Supply-side View of the Climate Problem", Review of Environmental Economics and Policy 9 (2), 2015, pp. 239-245 (Download, 1.73 MB), CESifo Working Paper No. 5385, June 2015 (Download, 108 KB).
"Public Policies against Global Warming: a supply side approach“, International Tax and Public Finance 15 (4), 2008, pp. 360-394; (Download, 413 KB); CESifo Working Paper No. 2087, August 2007; (Download, 397 KB).
Policy Contributions in Journals and Academic Volumes
Short Policy Contributions and Newspaper Articles
"Hans-Werner Sinn over de groene paradox" (Hans-Werner Sinn about the green paradox), MeJudice, Economists in debate, May 2nd, 2016, approximately 4 minutes.
"The Green Paradox", The World Financial Review, May – June 2012, p. 51.
"How to resolve the green paradoxon", Financial Times, August 27th, 2009, No. 37.090, p. 7.
"The Green Paradox" (ref. Project Syndicate June 2007), Journal of Turkish Weekly (Turkey), Les Nouvelles (Madagascar), Les Echos (Mali), Standard Times (Sierra Leone), South China Morning Post (Hong Kong), The Financial Express (India), The Korea Herald (South Korea), Business World (Philippines), The Sunday Times (Sri Lanka), The Nation (Thailand), Die Presse (Austria), L’Echo (Belgium), Borsen (Denmark), Aripaev (Estonia), Vilaggazdasag (Hungary), The Times of Malta (Malta), Danas (Serbia), Stabroek News (Guyana), Jordan Property (Jordan), Al Raya (Qatar), Al Eqtisadiah (Saudi Arabia), Duowei Times (USA).
Ifo Viewpoint No. 85: The Green Paradox, Jul 9, 2007.