Posts Tagged ‘tariffs’

Shooting Yourself in the Foot with a Green Bullet

Wednesday, April 2nd, 2008

By: Robert F. Abbott

I see an increasing amount of chatter about carbon taxes that might reach across national boundaries. Tariffs, in other words, that would penalize nations that do not meet environmental goals set by other countries.

The Europeans have been big on this idea for a while, and now I see Americans and Canadians jumping on the bandwagon, too.

Trouble is, this bandwagon is in a parade that features the emperor’s new clothes (if you’ll pardon a mixed metaphor or two).

You see, one of the big targets of these proposed carbon taxes would be China, and to a lesser extent, India. In reality, these proposals have as much to do with protectionism as with environmental protection, but let’s leave that issue for another day.

For now, let’s start with an observation that’s been around a while, but remains critically important: Environmental improvements only come with prosperity.

If our would-be carbon-taxers get their way and impose new tariff hurdles on Chinese goods flowing into developed countries, there will be a problem. China’s environmental stewardship will take a hit, too.

Without prosperity, both at the individual level and at the national level, there will be little or no improvement in environmental practices. If China’s exports are reduced, China’s governments will have less money available for all purposes, including the environment. And, obviously there will be no grassroots push if China’s workers are pessimistic about their economic futures (not that Chinese governments care much about citizen input, anyway).

Yes, China is a major polluter, and will be one for some time. But, as its economy grows and its citizens become more prosperous, we can expect them to take a growing interest in the environment.

On the other hand, pushing back China’s industrial and economic growth at this point would put a green bullet right through its environmental progress. And that would be two tragedies in one: for China’s working people, and for the atmosphere above us all.

You’re reading the commentary section of People, Profits, & Pensions. There’s also a book section, where you can read excerpts from my forthcoming book by the same name, visit http://www.people-profits-pensions.com . In addition to reading, you can also be a book critic and give me your thoughts on what you’ve read.