rebound and unintended outcomes of policy

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8 Terms

1
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rebound effect

increased consumption of the good, other goods, and overall economic activity due to greater efficiency

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rebound effect becomes Jevons paradox when

>100%

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Jevons paradox is when energy use

increases after energy efficiency improves

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rebound effect is when

some of the expected conservation from efficiency gains is lost to increased use

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green paradox

threat of climate change → policies to phase out fossil fuels → liquidation of reserves → accelerated climate change

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revenue taxes

those that generate finances needed to fund public goods and services

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punitive taxes

aimed at discouraging specific activities deemed harmful or undesirable

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pigouvian taxes

those designed to address negative externalities