How Will the Senate Address China and India?

Nicolas Loris /

Cap and Trade Calamities

One of the differences in the Senate version of cap and trade is that it leaves the door wide open on how to deal with countries that do not adopt carbon capping systems. China, India and other developing countries have made it clear they will not implement carbon cabs that would hurt their economies. The passed Waxman-Markey House cap and trade bill would impose a carbon tariff if countries do not implement some sort of carbon capping regime by 2020.

Since cap and trade would artificially raise the price on goods produced in the United States and place American firms at a competitive disadvantage, imports suddenly become cheaper. Some members of Congress and Secretary of Energy Steven Chu suggests a carbon tariff would “level the playing field” and ensure that Americans don’t begin purchasing goods from other countries. (more…)