Home About Browse Search
Svenska


The black paradox

Hart, Robert and Gars, Johan (2022). The black paradox. European Economic Review. 148 , 104211
[Research article]

[img] PDF
942kB

Abstract

We model competition between an oil monopolist and competitive suppliers of coal and renewable energy in a dynamic general equilibrium framework. We show that market power- which disrupts the order of extraction-may lead to higher long-run emissions by encouraging early extraction of dirty fuels such as coal which would otherwise remain in the ground permanently; simply banning coal burning may be better than Pigovian taxation. Market power can of course be corrected by production subsidies to the monopolist, but when distribution affects welfare a better option is to offer subsidies to renewable energy, which force the oil monopolist to reduce her (limit) price but are never actually paid out.

Authors/Creators:Hart, Robert and Gars, Johan
Title:The black paradox
Series Name/Journal:European Economic Review
Year of publishing :2022
Volume:148
Article number:104211
Number of Pages:21
Publisher:ELSEVIER
ISSN:0014-2921
Language:English
Publication Type:Research article
Article category:Scientific peer reviewed
Version:Published version
Copyright:Creative Commons: Attribution 4.0
Full Text Status:Public
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Economics
Keywords:Market power, OPEC, Coal, Climate change
URN:NBN:urn:nbn:se:slu:epsilon-p-118731
Permanent URL:
http://urn.kb.se/resolve?urn=urn:nbn:se:slu:epsilon-p-118731
Additional ID:
Type of IDID
DOI10.1016/j.euroecorev.2022.104211
Web of Science (WoS)000838584700002
ID Code:28764
Faculty:NJ - Fakulteten för naturresurser och jordbruksvetenskap
Department:(NL, NJ) > Dept. of Economics
Deposited By: SLUpub Connector
Deposited On:02 Sep 2022 14:25
Metadata Last Modified:02 Sep 2022 14:31

Repository Staff Only: item control page

Downloads

Downloads per year (since September 2012)

View more statistics

Downloads
Hits