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I think this is just the direction that needs to happen. The manufacturing and mining countries have a strong disincentive to carbon taxation -- the first mover
by wbillingsley 11y ago
I think this is just the direction that needs to happen. The manufacturing and mining countries have a strong disincentive to carbon taxation -- the first mover gets the "prize" of losing market share to their untaxed competitors. So they will make lots of populist noises periodically, but eventually not be effective at it. Australia got rid of its carbon tax, and even when it had it it compensated many of the major polluters to shield them from its effects. China announces "targets" that are generally a little worse than what was predicted to happen already -- carbon output peaking in 2030, etc. Canada will make lots of "progressive" noises now Trudeau is in but eventually they'll do little to harm the competitiveness of their resources industry.
If you're going to get carbon taxation, it needs to happen at consumption, because that's where you're not asking turkeys to vote for Christmas. Tax materials and products at an average rate for that product by default, but at a lower carbon-dependent rate if there is an independently verified audit trail for the environmental impact of its materials and manufacture. Effectively, a VAT or GST rate that depends on environmental impact.