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How can the Green Paradox be effectively overcome?

 I am exploring climate policy design and want to understand how governments can prevent the Green Paradox. I am particularly interested in policy timing, credibility, and global coordination.

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By Roma Answered 10 months ago

From my experience, the Green Paradox can be overcome through immediate and credible policy action. I have seen that clear carbon pricing, rapid implementation, and international coordination reduce incentives for early fossil fuel extraction. I would recommend avoiding long transition delays and pairing climate policies with supply-side measures, such as limits on extraction. When markets believe policies are firm and unavoidable, behavior shifts toward low-carbon investment rather than accelerated resource depletion.
 

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