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- W3208188952 abstract "Existing international environmental institutions curb fossil fuels by rewarding countries for reducing demand and expanding substitutes. This paper argues that it would be beneficial to create new institutions that would reward countries for reducing their fossil fuel supply. Assuming complete information, I prove a Price Preservation Lemma: For any given budget, the optimal way to split the budget between the three approaches (rewarding supply reduction, demand reduction and substitute expansion) leaves the world market price of the fossil fuel unchanged. In a dynamic setting, this result holds under full commitment for any given intertemporal budget. Using this Lemma, I show that the optimum cannot be implemented by relying on the supply side entirely on a deposit purchase fund. The results suggest that it would be valuable to also create funds rewarding countries for taxing fossil fuel extraction in addition to creating a deposit purchase fund." @default.
- W3208188952 created "2021-11-08" @default.
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- W3208188952 date "2021-01-01" @default.
- W3208188952 modified "2023-10-16" @default.
- W3208188952 title "Curbing Fossil Fuels: on the Design of Global Reward Payment Funds to Induce Countries to Reduce Supply, Reduce Demand and Expand Substitutes" @default.
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- W3208188952 doi "https://doi.org/10.2139/ssrn.3809626" @default.
- W3208188952 hasPublicationYear "2021" @default.
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