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How can the Green Paradox be overcome?

Overcoming the Green Paradox requires sudden, credible climate policies to prevent anticipatory extraction. Complementary supply-side measures, such as buying out reserves or enforcing moratoriums on new extraction, can reduce emissions. Global coordination is essential to prevent leakage and maintain policy effectiveness. Combining these strategies ensures that both demand- and supply-side interventions align to support decarbonization, reduce short-term emissions spikes, and promote long-term sustainable energy transitions worldwide.

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By Manasa Answered 4 months ago

It can be surmounted by implementing climate policies suddenly and credibly to prevent anticipatory behavior, or by complementing demand-side policies (taxes) with direct supply-side measures (buying out and leaving fossil fuel reserves in the ground, moratoriums on new extraction leases). Global cooperation is also key to prevent leakage.
 

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