
Originally Posted by
Melonie
Well this is precisely the point. In the 'real world' enacting carbon taxes in the US / EU / Australia raises energy costs for all industries located in those countries. In turn, some portion of these industries will be shut down due to economic non-competitiveness and replaced with new production facilities in China / Asia / 3rd world countries that A. do not charge a similar carbon tax, as well as B. do not mandate pollution or energy efficiency standards that are anywhere near as high as those in the US / EU / Australia.
So the end result will be that not only do the US / EU / Australia continue to lose industries / jobs / tax revenues / GDP to production facilities in China / Asia / 3rd world countries, but the amount of total carbon emissions / pollution emissions actually generated by the new China / Asia / 3rd world production facilities (which are essentially devoid of pollution and energy efficiency standards) to make the same amount of product will actually be higher than it used to be before the US / EU / Australian industries (which had some measure of pollution and energy efficiency standards in effect) closed down.
An example of this phenomenon already exists re California air quality. California enacted some of the strictest pollution controls in the world ... and as a result drove out a major fraction of its industries, which were replaced by new chinese production facilities. As a result, California's actual emission of pollutants dropped drastically. However, several years later, California finds itself unable to comply with clean air standards despite the fact that California pollution emissions have never been lower. After turning university eggheads loose on the problem, the cause was traced to vastly increased levels of pollution now being generated in China and blown right back to California via the Pacific Trade Winds ! So California has given up those jobs, has given up those tax revenues, has given up that contribution to state GDP etc. but in fact has NOT improved their air quality sufficiently to meet US clean air standards. An analogous situation is going to apply at a national level with carbon taxes. Of course, unlike the pollution being blown back from China, it IS possible to intercept non-carbon taxed Chinese / Asian / 3rd world goods at US ports ... and impose a carbon tariff on them. However, all this does is increase retail prices that US customers must pay for imported items - it applies no direct incentive for companies in China / Asia / 3rd world countries to reduce their carbon emissions.
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