In part 2 the Professor continues from where part 1 ended. She then introduces the 5-pool Model dealing with oil consumption and exhaustion.
She moves on discussing possible emission coalitions among countries and illustrates the increasing importance of involving developing countries. In 1975 the OECD countries’ energy demand equaled about 60% of the world demand in 2035 their demand is estimated to be about a third.
Still, the Professor wonders, what can the OECD countries do on their own to for example eliminate the demand for oil shale. She shows how a modest 10$ carbon tax in a coalition of OECD countries would do the trick. Then she does the same thing for heavy oil (sand oil), but this would take more effort.
This recent research, however, gives a more positive view than the Green Paradox literature, and leads to the conclusion that clean energy innovation is a substitute for coalition size. So that with innovation a lot can be done even though green policy coalitions are small.
The last ten minutes of the lecture is more of a discussion, where also other professor’s contribute.