A Solution to the Competitiveness Risks of Climate Policy: Countervailing Duty Law - Joseph Aldy

October 5, 2021, Opinion: "Over the past year, governments across the world have called for more ambitious goals to combat climate change. Many countries, including Japan, have pledged net-zero emissions goals by mid-century, with China aiming to do so by 2060. In April, the Biden administration pledged to cut US emissions in half by 2030 as part of a broader set of aims that includes an emissions-free power sector by 2035 and net-zero emissions economy-wide by 2050. At the same time, some national governments have raised concerns about the potential for ambitious emissions mitigation policies to impose adverse competitiveness pressures on energy-intensive domestic industries that could in turn result in emissions leakage. Leakage happens when emissions reductions in a regulated region are undermined by increased emissions in other regions due to the relocation of industrial activity to unregulated areas. While economic evidence is mized about the competitiveness risks of climate change policy, the issue is politically salient." Read on Resources.Org

HKS Author - Joseph Aldy