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COLUMNISTS
TODAY'S STORIES
29.04.2008
Would Green Protectionism Work?

It's not just the Bush administration that's resisting mandatory caps on greenhouse-gas emissions. Now Russia, too, has announced that it won't accept binding caps when Kyoto comes up for revisions in 2012, either. "In the foreseeable future, this will not be our model, no," said Vsevolod Gavrilov, Russia's carbon czar.

In the meantime, some EU leaders are wondering if there's a way to impose a de facto carbon tax on countries like China, Russia, and India that refuse to accept binding caps—namely, by slapping a "carbon tariff" on all imports from countries without climate legislation. That's certainly one way for countries with cap-and-trade regimes in place to dissuade their companies from fleeing to dirtier locales. The tricky part, though, is that a carbon tariff would be tough to enforce—how do you know how much carbon actually went into the making of this or that product?—and might run afoul of the WTO. But that doesn't mean it's unworkable.

More: Via Grist, a new report from Canadian-based investment bank CBIC finds that if the United States started regulating carbon emissions and put in place a carbon tariff in response to Chinese inaction, that "could reverse the migration of certain manufacturing industries that have left North America for much cheaper labour markets in China." Interesting. I wonder what the free-traders would say about this. Of course, triggering a trade war might be a wee bit problematic.

--Bradford Plumer

Posted: Tuesday, April 29, 2008 10:40 PM with 3 comment(s)

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sdemuth said:

Free traders will be automatically against it, because free trade is a religion, not a policy mechanism for them.  A carbon offset tariff may or may not be a good idea - one has to actually study the likely results - for economic growth, for carbon emissions, and for the international order, in order to make a reasonable judgment.  That's way too nuanced for most free traders.

April 29, 2008 8:26 PM

teplukhin2you said:

"some EU leaders are wondering if there's a way to impose a de facto carbon tax on countries like China, Russia, and India"

That's easy. Ask the bandits who run those countries what their price is, and pay it directly to their numbered Swiss accounts.

Might be a hundred billion or so. Maybe a hundred billion for Putin-Mobutu and his retinue alone.

April 30, 2008 1:08 AM

virginiacentrist said:

In essence, Walmart is doing this to their suppliers.

Of course I can't praise walmart without mentioning that their carbon foot print is humungous...what with the corn field stores/inefficient land use.

April 30, 2008 8:57 AM