Comments on: Are Carbon Tariffs WTO-Consistent? http://www.globalpolicymemo.com/?p=124 Commentary and Counterpoint on World Affairs Wed, 08 Sep 2010 10:36:40 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Jeffrey Kessler http://www.globalpolicymemo.com/?p=124&cpage=1#comment-19 Jeffrey Kessler Tue, 24 Mar 2009 01:38:36 +0000 http://www.globalpolicymemo.com/?p=124#comment-19 You raise an interesting point about the relationship between carbon tariffs and "the spirit of free trade." It's not as obvious to me that they are in harmony. Certain domestic political lobbies would push a carbon tariff because of the effects it has on increasing the home-bias of U.S. consumption patterns. (Of course, there will be many lobbies on the other side of the issue, especially those that represent exporters to countries that do not unilaterally adopt a cap-and-trade scheme.) Thus both in effect and in motive, a carbon tariff could advance a protectionist political agenda. If you believe in maximizing the size of the world's pie and you also want to stop global warming, I think the only way to go is a multilateral, Kyoto-style solution. It sounds like you agree that that would be the best scenario. You raise an interesting point about the relationship between carbon tariffs and “the spirit of free trade.” It’s not as obvious to me that they are in harmony. Certain domestic political lobbies would push a carbon tariff because of the effects it has on increasing the home-bias of U.S. consumption patterns. (Of course, there will be many lobbies on the other side of the issue, especially those that represent exporters to countries that do not unilaterally adopt a cap-and-trade scheme.) Thus both in effect and in motive, a carbon tariff could advance a protectionist political agenda.

If you believe in maximizing the size of the world’s pie and you also want to stop global warming, I think the only way to go is a multilateral, Kyoto-style solution. It sounds like you agree that that would be the best scenario.

]]> By: Sina http://www.globalpolicymemo.com/?p=124&cpage=1#comment-18 Sina Tue, 24 Mar 2009 01:25:14 +0000 http://www.globalpolicymemo.com/?p=124#comment-18 That's a really interesting post. I've read about WTO concerns, and your argument seems convincing to me. I also don't think it violates the spirit of free trade to be imposing these kinds of tariffs. If anything, hopefully it will prod other nations to set up a coherent, multilateral regime that forces polluters to pay the cost of their externalities. That’s a really interesting post. I’ve read about WTO concerns, and your argument seems convincing to me. I also don’t think it violates the spirit of free trade to be imposing these kinds of tariffs. If anything, hopefully it will prod other nations to set up a coherent, multilateral regime that forces polluters to pay the cost of their externalities.

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