Announcing is bad, delaying is worse: Another pitfall in well-intended climate policy

Jus, Darko und Meier, Volker (2012): Announcing is bad, delaying is worse: Another pitfall in well-intended climate policy. CESifo Working Paper: Energy and Climate Economics,

Abstract

It is frequently observed that the implementation of green policies is delayed compared to the initial announcement. Considering a setting with a representative monopolist extracting a non-renewable resource, we demonstrate that announcing a green policy, but then delaying its implementation, is associated with a larger cumulative extraction at any point in time than announcing a late implementation of this policy at the outset.

• Item Type: Paper
• Faculties: Economics; Economics > Chairs > Chair for Public Economics
• Subjects: 300 Social sciences > 330 Economics
• Language: English