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International Tax and Public Finance

, Volume 15, Issue 4, pp 360–394 | Cite as

Public policies against global warming: a supply side approach

  • Hans-Werner SinnEmail author
Open Access
Article

Abstract

The countries that have ratified the Kyoto Protocol have pledged to limit global warming by reducing the demand for fossil fuels. But what about supply? If suppliers do not react, demand reductions by a subset of countries are ineffective. They simply depress the world price of carbon and induce the environmental sinners to consume what the Kyoto countries have economized on. Even worse, if suppliers feel threatened by a gradual greening of economic policies in the Kyoto countries that would damage their future prices; they will extract their stocks more rapidly, thus accelerating global warming. The paper discusses the remaining policy options against global warming from an intertemporal supply-side perspective.

Keywords

Global warming Kyoto protocol Carbon taxes 

JEL Classification

O13 Q32 Q54 H23 

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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.Ifo Institute for Economic ResearchLudwig Maximilian’s UniversityMunichGermany

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