Work on this paper started during my visits to CESifo and FEEM in the autumn of 2008; I am grateful to these institutions for their support. The support of the Research Council of Norway, under the PETROSAM program, is also gratefully acknowledged. I also thank Olav Bjerkholt, Rolf Golombek, and several participants at seminars in Munich, Venice, and Oslo for useful comments. Two anonymous referees have also given very useful and constructive advice, including suggestions for how best to construct a model for the issues being analyzed.
The Supply Side of CO2 with Country Heterogeneity†
Article first published online: 28 NOV 2011
© The editors of The Scandinavian Journal of Economics 2011.
The Scandinavian Journal of Economics
Special Issue: Climate Change and Distribution
Volume 113, Issue 4, pages 846–865, December 2011
How to Cite
Hoel, M. (2011), The Supply Side of CO2 with Country Heterogeneity. The Scandinavian Journal of Economics, 113: 846–865. doi: 10.1111/j.1467-9442.2011.01682.x
- Issue published online: 28 NOV 2011
- Article first published online: 28 NOV 2011
- Climate change;
- exhaustible resources;
- green paradox;
- renewable energy
Several recent articles have analyzed climate policy, paying explicit attention to the fact that carbon resources are non-renewable. In most of this body of literature, the economy is treated as a single unit and, in the context of climate policy, it seems reasonable to interpret this as the whole world. However, carbon taxes and other climate policies differ substantially across countries. With such heterogeneity, the effects on the emission paths of changes in taxes, costs, and subsidies might be very different from what is found for a hypothetical world of identical countries.