Costly, ineffectual and protectionist carbon tariffs
Today Sustainable Development released its second report, Costly, ineffectual and protectionist carbon tariffs. The research paper looks at the cost of carbon tariffs that the EU and US are considering introducing to offset the cost of domestic carbon price signals. Our research found that a potential US carbon tariff on carbon-intensive imports is likely to be set at approximately ten per cent.
The report also finds carbon tariffs would:
* harm the same industries they seek to protect;
* be ineffective in offsetting the cost of domestic carbon price signals and addressing potential carbon leakage
* be administratively impossible to implement
* likely breach the obligations of WTO members to treat all imports equally and equivalent to domestically produced products.
This report has been produced by the Australian think tank, the Insititute for Public Affairs.