Skip to main content
padlock icon - secure page this page is secure
Home / FinanzArchiv: Public Finance Analysis, Volume 74, Number 1

Breakthrough Renewables and the Green Paradox

Buy Article:

$30.00 + tax (Refund Policy)

Author: Van der Ploeg, Frederick

Source: FinanzArchiv: Public Finance Analysis, Volume 74, Number 1, March 2018, pp. 52-70(19)

Publisher: Mohr Siebeck

DOI: https://doi.org/10.1628/001522118X15101422148687

We show how a fossil fuel monopoly responds to a carbon-free substitute becoming available at some uncertain point in the future if demand is isoelastic and variable extraction costs are zero but upfront exploration investment costs have to be made. Before the breakthrough, oil reserves are depleted too rapidly; afterwards, the oil depletion rate drops and the oil price jumps up by discrete amounts. Subsidizing green R&D to speed up the breakthrough speeds up oil extraction before the breakthrough, but more oil is left in situ as exploration investment is lower. The latter can offset the Green Paradox effect.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Keywords: GREEN PARADOX; GREEN R&D; REGIME SHIFT

Document Type: Research Article

Publication date: March 1, 2018

This article was made available online on January 15, 2018 as a Fast Track article with title: "Breakthrough Renewables and the Green Paradox".

More about this publication?

  • As one of the world's oldest professional journals in public finance, founded in 1884, FinanzArchiv (FA) publishes original work from all fields of public economics which are of interest to an international readership, e.g. taxation, public debt, public goods, public choice, federalism, market failure, social policy, and the welfare state. Special emphasis is on high-quality theoretical and empirical papers on current policy issues.

    FA is a peer-reviewed journal commited to a prompt turnaround of submissions.

    FA is listed in the Social Science Citation Index (SSCI), in Current Contents/Social and Behavioral Sciences, in Econ Lit, in the Journal of Economic Literature, in IDEAS and RePEc and in the International Bibliography of the Social Sciences.

    Subscriber access to FinanzArchiv: Public Finance Analysis is no longer available on Ingenta Connect. Please go to https://www.mohrsiebeck.com/en/journal/finanzarchiv-fa to access your online subscriptions to these titles.

  • Editorial Board
  • Information for Authors
  • Submit a Paper
  • Subscribe to this Title
  • Information for Advertisers
  • Terms & Conditions
  • About Us
  • Contact
  • Ingenta Connect is not responsible for the content or availability of external websites

Share Content

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more