Unintended Detrimental Effects of Environmental Policy: The Green Paradox and Beyond

Well-intended policies aimed at reducing greenhouse gas emissions may have unintended undesirable consequences. Recently, a large literature has emerged showing under what conditions this so-called ‘Green Paradox’ may occur. We review this literature and identify the key mechanisms behind these paradoxical policy outcomes and highlight avenues for future research.climate policy, green paradox, non-renewable resources, scarcity, carbon tax, announcement effects, implementation lag, carbon leakage, backstop technology