Is Green Paradox really a probable outcome of climate policies?

dc.contributorAalto-yliopistofi
dc.contributorAalto Universityen
dc.contributor.authorSolkinen, Jenny
dc.contributor.departmentTaloustieteen laitosfi
dc.contributor.departmentDepartment of Economicsen
dc.contributor.schoolKauppakorkeakoulufi
dc.contributor.schoolSchool of Businessen
dc.date.accessioned2017-06-15T07:44:04Z
dc.date.available2017-06-15T07:44:04Z
dc.date.dateaccepted2016-06-14
dc.date.issued2016
dc.description.abstractClimate change has induced economists to extend traditional Hotelling frameworks to study the effects of carbon taxes on the resource extraction path of carbon resource and derive crucial policy implications. Of particular relevance to the literature of economics of climate change is Sinn(2008) who introduces the green paradox as a possible outcome of climate policies today. As resource owners are confronted with in time increasing carbon taxes, and as owners include rising taxes into their maximization problem, the result is rather a faster than a slower extraction of the fossil fuel resource. That is because an in time rising tax imposes a threat on future profits of extraction, and the resource owner will come to the logical conclusion that shifting extraction to the presence increases his expected total revenues. Accordingly, the main purpose of this thesis is to uncover whether we should focus on subsidizing renewal energy resources such as solar energy and wind power, or will that only result in increased fossil fuel extraction and emissions.In other words, the goal is to reveal whether the green paradox exists as Sinn(2008) claims.en
dc.ethesisid14763
dc.format.extent90
dc.format.mimetypeapplication/pdfen
dc.identifier.urihttps://aaltodoc.aalto.fi/handle/123456789/26858
dc.identifier.urnURN:NBN:fi:aalto-201801181121
dc.language.isoenen
dc.locationP1 I
dc.programme.majorKansantaloustiedefi
dc.programme.majorEconomicsen
dc.subject.heleconympäristö
dc.subject.heleconympäristötalous
dc.subject.keywordgreen paradox
dc.subject.keywordclimate policies
dc.subject.keywordclimate change
dc.subject.keywordclimate economics
dc.titleIs Green Paradox really a probable outcome of climate policies?en
dc.typeG2 Pro gradu, diplomityöfi
dc.type.dcmitypetexten
dc.type.ontasotPro gradu tutkielmafi
dc.type.ontasotMaster's thesisen
local.aalto.idthes14763
local.aalto.openaccessyes
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