How do we finance the cost of mitigating climate change, while discouraging continued use of fossil fuels? The largest public statement of economists in history argues for a carbon tax - which would charge a fee for every ton of carbon dioxide emitted.
But, if one country charges a different carbon tax than another, what would happen to international trade? Would fossil fuel use and emissions-intensive industrial processes actually decrease, or just move to a country without a carbon tax?
Carbon border adjustments attempt to address these issues, and come with their own legal, economic and practical complexities.
Listen to Climate Now's new podcast episode featuring conversations with Dr. Adele Morris, former Policy Director for Climate and Energy Economics at the Brookings Institution, Dr. David Weisbach, Professor of Law at the University of Chicago, Dr. Brian Flannery, Visiting Fellow for Resources for the Future, and Shuting Pomerleau, Climate Policy Analyst at the Niskanen Center. These experts help us unravel how carbon border adjustments could work, and their role in building solutions to the climate crisis.
Time Codes:
0:00 - carbon border adjustment economics
13:45 - carbon border adjustment logistics
30:00 - carbon border adjustment legality
34:30 - carbon pricing
Pricing carbon around the globe: Why it's so difficult