The Complications of Climate Policy ft. Kristin Eberhard & Shuting Pomerleau
The New Liberal Podcast
00:00
Carbon Leakage and the Carbon Tax
There are two major goals. The first goal is what just mentioned, is to prevent carbon leakage. If importers aren't subject to the carbon tax, then they're not on a level plane with us. Producers might be competing at a disadvantage with foreign producers who might not be subject to any sort of climate regulations or carbon pricing policies. And that pretty much explains the logic why when goods are coming in, we tax them. When goods are going out, we exempt he tex liability.
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