Climate, trade, Obama - Paul Krugman Blog - NYTimes.com
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Saved by 6 people (0 private), first by anonymouse user on 2009-06-29
- Flyingkumquat on 2009-07-21 - Tags no_tag
- Valtron29 on 2009-06-30 - Tags no_tag
- Bmaclean on 2009-06-29 - Tags climate change , climate policy , Obama , carbon tax
- Tonycurzonprice on 2009-06-29 - Tags economics , environment
- Nspalmer on 2009-06-29 - Tags krugman , nytimes , economics , environment , global warming , international trade
Public Sticky notes
Climate, trade, Obama
Highlighted by tonycurzonprice
“border adjustment” — or tariff — on certain goods from countries that do not act to limit their global warming emissions. The president can waive the tariffs only if he receives explicit permission from Congress.
Highlighted by valtron29
If you only impose restrictions on greenhouse gas emissions from domestic sources, you give consumers no incentive to avoid purchasing products that cause emissions in other countries; as a result, you have an inefficient outcome even from a world point of view. So border adjustments here are entirely legitimate in terms of basic economics.
Highlighted by flyingkumquat
And they’re also probably OK under trade law. The WTO has looked at the issue, and suggests that carbon tariffs may be viewed the same way as border adjustments associated with value-added taxes. It has long been accepted that a VAT is essentially a sales tax — a tax on consumers — which for administrative reasons is collected from producers. Because it’s essentially a tax on consumers, it’s legal, and also economically efficient, to collect it on imported goods as well as domestic production; it’s a matter of leveling the playing field, not protectionism.
Highlighted by flyingkumquat
to level the international playing field with regard to implementing “border adjustments” designed to compensate for changes in domestic policies?
Highlighted by valtron29
Public Comment