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This paper presents the first empirical test of the green paradox hypothesis, according to which well-intended but imperfectly implemented environmental policies may lead to detrimental outcomes due to supply side responses.
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Our study identified both supply side and demand side barriers to postnatal care visits.
Then, with a broad tax base offering no significant avoidance opportunities, only real supply-side responses would limit how high top tax rate can be set before becoming counter-productive.
Only few studies have examined supply-side responses to alcohol pricing policies, which could include market restructuring or increased discounts [ 56, 57].
In practice, future policy design should seek to factor in potential supply-side responses that could mitigate the intended effect of the policy.
The question now is how long it will take for that demand to grow strong enough to elicit the desired supply-side response.
A more logical, economically productive (and revenue-effective) response would be the supply-side response: cut the sales tax as much as possible so it doesnt make that much difference which sellers are liable for revenue collections.
Unless the answers to the last two questions are strongly positive, vouchers of the size that the federal government can offer are extremely unlikely to stimulate a major supply-side response.
The proliferation of informal drug sellers and itinerant doctors within slum areas can be interpreted as a supply-side response to demand for accessible services.
Recent reviews of the growing trend to abolish or suspend user fees highlight that for these policies to be effective, careful planning of the supply-side response to the stimulated demand has to take place [ 8, 9, 13, 23, 24, 26, 27].
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