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• W4285806311 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." @default.
• W4285806311 created "2022-07-19" @default.
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• W4285806311 date "2022-09-01" @default.
• W4285806311 modified "2023-09-30" @default.
• W4285806311 title "The black paradox" @default.
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• W4285806311 doi "https://doi.org/10.1016/j.euroecorev.2022.104211" @default.
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