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The Green Paradox and Interjurisdictional Competition across Space and Time

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Title: The Green Paradox and Interjurisdictional Competition across Space and Time
Authors: Habla, Wolfgang
Issue Date: Jun-2016
Extent: 37
Publication type: report
Organization: Dept. of Economics, University of Gothenburg
Series/Report no.: Working Papers in Economics
Keywords: Green Paradox
factor mobility
interjurisdictional competition
resource extraction
substitutability between capital and resources
capital taxation
Abstract: This paper demonstrates that unintended effects of climate policies (Green Paradox effects) also arise in general equilibrium when countries compete for mobile factors of production (capital and resources/energy). Second, it shows that countries have a rationale to use strictly positive source-based capital taxes to slow down resource extraction. Notably, this result comes about in the absence of any revenue requirements by the government, and independently of the elasticity of substitution betw... more
ISSN: 1403-2465
Description: JEL: E22, H23, H77, Q31, Q58
Appears in Collections:Working papers



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