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Leaving Coal Unburned: Options for Demand-Side and Supply-Side Policies

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  • Kim Collins
  • Roman Mendelevitch

Abstract

Climate policy consistent with the 2°C target needs to install mechanisms that leave most current coal reserves unburned. Demand-side policies have been argued to be prone to adverse carbon leakage and “green paradox” effects. A growing strain of literature argues in favor of supply-side policies in order to curb future coal consumption. Various concepts with analogies in other sectors are currently discussed. Future empirical research on both demand- and supply-side policy is vital to be able to design efficient and effective policy instruments for climate change mitigation.

Suggested Citation

  • Kim Collins & Roman Mendelevitch, 2015. "Leaving Coal Unburned: Options for Demand-Side and Supply-Side Policies," DIW Roundup: Politik im Fokus 87, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwrup:87en
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.522229.de/DIW_Roundup_87_en.pdf
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    References listed on IDEAS

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    5. Philipp M. Richter & Roman Mendelevitch & Frank Jotzo, 2015. "Market Power Rents and Climate Change Mitigation: A Rationale for Coal Taxes?," Discussion Papers of DIW Berlin 1471, DIW Berlin, German Institute for Economic Research.
    6. Paul Collier & Anthony J. Venables, 2014. "Closing coal: economic and moral incentives," Oxford Review of Economic Policy, Oxford University Press, vol. 30(3), pages 492-512.
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    Cited by:

    1. Fergus Green & Richard Denniss, 2018. "Cutting with both arms of the scissors: the economic and political case for restrictive supply-side climate policies," Climatic Change, Springer, vol. 150(1), pages 73-87, September.
    2. Philipp M. Richter & Roman Mendelevitch & Frank Jotzo, 2018. "Coal taxes as supply-side climate policy: a rationale for major exporters?," Climatic Change, Springer, vol. 150(1), pages 43-56, September.
    3. Foramitti, Joël & Savin, Ivan & van den Bergh, Jeroen C.J.M., 2021. "Regulation at the source? Comparing upstream and downstream climate policies," Technological Forecasting and Social Change, Elsevier, vol. 172(C).

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