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Currency wars: China should impose green taxes on its exports | vox EU - Gérard Roland
There is a creative solution that would show genuine international leadership on the part of Chinese leaders: start imposing a green tax on Chinese exports. This would have the same effect as an import tariff imposed on the US side but the revenue would instead go to the Chinese government.

If they use the tariff revenues solely for green investments to reduce Chinese carbon emissions, they would achieve two goals at the same time:

  1. reduce the international currency tensions that risk leading to dangerous trade wars while saving face,
  2. show international leadership in adjustment to climate change.

China has, after all, become a main manufacturing hub in today's world economy and it seems only normal that all countries that benefit from Chinese goods pay their part in reducing carbon emissions related to that manufacturing process.

If Chinese leaders were bold and creative enough to make such a move, it would certainly not be enough to shame US politicians into doing something about climate change but it would further isolate the all-too-large-lunatic fringe in the US that claims that climate change is a hoax.

It would certainly do a lot to show that Chinese leaders are able to think beyond the sole interests of their country and exercise some international leadership in one of the most important issues of the twenty-first century.

by Bernard on Wed Oct 13th, 2010 at 09:36:24 AM EST
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