Should “Carbon Tariffs” Be imposed upon Greenhouse Gas-Producing Traded Goods?.
In the aggregate, China is the world’s largest emitter of greenhouse gases, primarily carbon di- oxide, while the United States is the largest emitter of carbon dioxide on a per capita basis. The countries of the European Union fall somewhere in between. To control global warming and climate change, there has been a worldwide movement to regulate greenhouse gases caused by energy-intensive industries, such as the manufacturing of aluminum and other metals, pa- per, chemicals, and cement. The question is: Will the imposition of “carbon tariffs” (i.e., dollars per ton of carbon dioxide emitted by, for instance, aluminum production) in a particular coun- try lead to unfair competition?
POINT If an agreement can be reached on a global ba- sis without exceptions, a WTO-negotiated carbon tariff could lead to a reduction in worldwide demand for car- bon dioxide-intensive materials as well as a move from coal-fired power plants to greener alternative-energy sources for electric power. Carbon tariffs could also lead to greater investment in research and development to conserve energy and to find more efficient ways in the manufacturing process so as to minimize greenhouse gas emissions.
CoUNTERPoINT By imposing a carbon tariff on the exports of greenhouse gas-emitting industries, one would be exposing these firms to unfair competition from those that do not emit carbon dioxide. Also, the output of these industries (steel, paper, cement, etc.) is so basic (inelastic) for life that the net reduction in their demand may not have much impact on greenhouse gas emissions. Finally, a carbon tariff may be hard to imple- ment. Customs officials would either need to assess the emissions embedded in imports or make arbitrary assumptions—the latter being a recipe for trade war.
Define globalization and explain how institutions, structures, policies, and technology affect business operations.
Explore the linkages between international trade agreements, exchange rates and the flow of monies around the globe.
a fully cited 7-8 page argumentative essay based on the discussion titled “Should “Carbon Tariffs” Be imposed upon Greenhouse Gas-Producing Traded Goods?” POINT><COUNTERPOINT discussion.
Introduction should include a thesis. Reflection should present a research-based conclusion
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