201. When CO2 Goes to Geneva: Taxing Carbon across Borders — Without Violating WTO Obligations
- Author:
- Maria Paniezi
- Publication Date:
- 11-2015
- Content Type:
- Working Paper
- Institution:
- Centre for International Governance Innovation
- Abstract:
- Carbon taxes become relevant for international trade when they are coupled with border tax adjustment (BTA) legislation for imported products. BTAs are intended to level the playing field between domestic and foreign products, but such tax schemes, if not designed properly, can be found to violate a country’s international commitments before the World Trade Organization (WTO). This paper argues that environmentally conscious governments can impose a WTO-compatible BTA to offset domestic CO2 legislation, and that federal governments need to engage in coordinated efforts to harmonize treatment of high CO2 emitters domestically, since domestic industries will not bear the burden of environmental regulation alone.
- Topic:
- Climate Change, Environment, International Trade and Finance, and World Trade Organization
- Political Geography:
- Global Focus