Zhang, ZhongXiang (2008): Multilateral Trade Measures in a Post-2012 Climate Change Regime?: What Can Be Taken from the Montreal Protocol and the WTO?
Download (174Kb) | Preview
The climate-trade nexus gains increasing attention as governments are taking great efforts to forge a post-2012 climate change regime to succeed the Kyoto Protocol. This raises the issues of the scope of trade-related measures and of when and how they could be used. To gain some guidance on the scope of trade provisions in a post-2012 climate regime, this paper first discusses the Montreal Protocol in which such trade provisions have been included. The paper argues that while it is unlikely for developing country parties to agree the inclusion of trade-related measures in a post-2012 climate regime, trade-related measures should, at the very least, be contemplated for a set of industrialized countries (Annex I or II countries) as part of the evolving climate regime. It should be specified how these measures will apply to non-complying parties within this group and when and how unilateral trade measures can be used against countries outside the group. To that end, the paper emphasizes that there is a clear need to define comparable efforts towards climate mitigation and adaptation to discipline the use of unilateral trade measures at the international level, as the Lieberman-Warner bill in the U.S. Senate demonstrated great possibility that some industrialized countries, if not all, are considering the term “comparable” as the standard by which to assess the efforts made by their trading partners in order to decide on whether to impose unilateral trade measures on them. While that bill died on the floor of the Senate, this is by no means the end of the prospect for border adjustment type of unilateral trade measures bill. The paper argues that the Lieberman-Warner type of border adjustment bill, in its current form, is likely to face WTO-consistency and methodological challenges. It also holds out more sticks than carrots to developing countries. In order to encourage developing countries to do more to combat climate change, the paper suggests that developed countries should clearly focus on carrots. Sticks can be incorporated, but only if they are credible and realistic and serve as a useful supplement to push developing countries to take actions or adopt policies and measures earlier than would otherwise have been the case.
|Item Type:||MPRA Paper|
|Original Title:||Multilateral Trade Measures in a Post-2012 Climate Change Regime?: What Can Be Taken from the Montreal Protocol and the WTO?|
|Keywords:||Post-Kyoto climate negotiations; Trade-related measures; Developing countries|
|Subjects:||F - International Economics > F1 - Trade > F18 - Trade and Environment
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters; Global Warming
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy
|Depositing User:||ZhongXiang Zhang|
|Date Deposited:||16. Jan 2009 06:52|
|Last Modified:||21. Feb 2013 20:30|
Bovenberg, A.L. and L.H. Goulder (2002), Addressing Industry-Distributional Concerns in U.S. Climate Change Policy, Unpublished manuscript, Department of Economics, Stanford University.
Brack, D. (1996), International Trade and the Montreal Protocol, The Royal Institute of International Affairs and Earthscan, London.
Charnovitz, S. (2003), Trade and Climate: Potential Conflicts and Synergies, in Pew Center on Global Climate Change, Beyond Kyoto – Advancing the International Effort Against Climate Change, pp. 141-170.
Cundy, C. (2006), World Bank Raises Spending, Exceeds Target, on Renewables, Environmental Finance, Vol. 7, No. 10, September, p. 14.
EIA (2007), Emissions of Greenhouse Gases in the United States 2006, DOE/EIA-0573(2006), U.S. Energy Information Administration (EIA), Washington, DC, November, Available at: http://www.eia.doe.gov/oiaf/1605/ggrpt/pdf/0573(2006).pdf.
General Agreement on Tariffs and Trade (GATT, 1990), Thailand – Restrictions on Importations of and Internal Taxes on Cigarettes, Report of the Panel, DS10/R, October 5.
Global Environment Facility (2008a), Status Report on the Climate Change Funds October 2008 (Report from the Trustee), GEF/LDCF.SCCF.5/Inf.2, Washington, DC, November 7, Available at: http://www.thegef.org/uploadedFiles/Documents/LDCFSCCF_Council_Documents/LDCFSCCF5_November_2008/LDCF.SCCF.5.Inf.2%20Status%20Report%20on%20the%20Climate%20Change%20Funds.pdf.
Global Environment Facility (2008b), Work Program Submitted for GEF Council Approval, GEF/C.34/6, Washington, DC, October 14, Available at: http://www.thegef.org/uploadedFiles/Documents/Council_Documents__(PDF_DOC)/GEF_C34/C.34.6%20Work%20Program%20Cover%20Note(1).pdf.
Hoerner, J.A. (1998), The Role of Border Tax Adjustments in Environmental Taxation: Theory and U.S. Experience, Presented at the International Workshop on Market-based Instruments and Interna¬tional Trade, Amsterdam, 19-20 March.
McBroom, M. (2008), How the IBEW-UWM-Boilermakers-AEP International Proposal Operates within Climate Legislation, June 17, Available at: http://www.wita.org/index.php?tg=fileman&idx=viewfile&idf=189&id=4&gr=Y&path=&file=WITA-+Climate+Change+-+Overview+of+IBEW-AEP+Proposal+(June+17%2C+2008).pdf.
Morris, M.G. and E.D. Hill (2007), Trade is the Key to Climate Change, The Energy Daily, Vol. 35, No. 33, February 20.
Pew Center on Global Climate Change (2008), Summary of the Boxer Substitute Amendment to the Lieberman-Warner Climate Security Act, June 4, Available at: http://www.pewclimate.org/docUploads/L-WFullSummary.pdf.
Point Carbon (2008), Carbon 2008: Post-2012 Is Now, Norway, March 11.
Poterba, J.M. and J.J. Rotemberg (1995), Environmental Taxes on Intermediate and Final Goods When Both Can Be Imported, International Tax and Public Finance, Vol. 2, pp. 221-228.
Samuelsohn, D. (2007), Trade Plan Opposed by China, Brazil and Mexico, Greenwire, September 26, Available at: http://www.earthportal.org/news/?p=507.
Stern, N. (2007), Stern Review on the Economics of Climate Change, Cambridge University Press, Available at: http://www.hm-treasury.gov.uk/independent_reviews/stern_review_economics_climate_change/sternreview_index.cfm.
Subcommittee on Energy and Air Quality of the U.S. House of Representatives (2008), Competitiveness Concerns/Engaging Developing Countries, Climate Change Legislation Design White Paper, Washington DC, January, Available at: http://energycommerce.house.gov/Climate_Change/White_Paper.competitiveness.013108.pdf.
The Economist (2008), Pollution Law: Trading Dirt, June 7, pp. 42-44.
The World Bank (2006), An Investment Framework for Clean Energy and Development: A Progress Report, Background Paper for the Development Committee Meeting on September 18, Washington DC.
UNFCCC Secretariat (2007), Report on Analysis of Existing and Potential Investment and Financial Flows Relevant to the Development of an Effective and Appropriate International Response to the Climate Change, Dialogue Working Paper No. 8, Prepared for the Fourth Workshop under the Dialogue on Long-Term Cooperative Action to Address Climate Change by Enhancing Implementation of The Convention, August 27-29, Vienna, Available at: http://unfccc.int/files/cooperation_and_support/financial_mechanism/financial_mechanism_gef/application/pdf/dialogue_working_paper_8.pdf.
Werksman, J. (2008), Reflecting Trade Related Measures in a Post-2012 Agreement: Comparing the Incomparable, Presented at the UNEP/ADAM International Workshop on Post-2012 Climate and Trade Policies, Geneva, Switzerland, September 8-9.
Zhang, Z.X. (1998), Greenhouse Gas Emissions Trading and the World Trading System, Journal of World Trade, Vol. 32, No. 5, pp. 219-239.
Zhang, Z.X. (2000), Can China Afford to Commit itself an Emissions Cap? An Economic and Political Analysis, Energy Economics, Vol. 22, No. 6, pp. 587-614.
Zhang, Z.X. (2004), Open Trade with the U.S. without Compromising Canada’s Ability to Comply with its Kyoto Target, Journal of World Trade, Vol. 38, No. 1, pp. 155-182.
Zhang, Z.X. (2007), Doing Trade and Climate Policy Together, in Najam, A., Halle, M. and R. Meléndez-Ortiz (editors), Trade and Environment: A Resource Book, International Institute for Sustainable Development, Canada, and International Center for Trade and Sustainable Development, Geneva, pp. 61-62.
Zhang, Z.X. (2008a), Asian Energy and Environmental Policy: Promoting Growth While Preserving the Environment, Energy Policy, Vol. 36, No. 10, pp. 3905-3924.
Zhang, Z.X. (2008b), Is China a Christmas Tree to Hang Everybody’s Complaints? Putting its Own Energy-Saving into Perspective, The Plenary Address at the 31st International Association for Energy Economics International Conference, Istanbul, Turkey, June 18, Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1285618.
Zhang, Z.X. (2008c), How Far Can Developing Country Commitments Go in an Immediate Post-2012 Climate Regime?, Social Science Research Network Working Paper, Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1292050.
Zhang, Z.X. and L. Assunção (2004), Domestic Climate Policy and the WTO, The World Economy, Vol. 27, No. 3, pp. 359-386.
Available Versions of this Item
- Multilateral Trade Measures in a Post-2012 Climate Change Regime?: What Can Be Taken from the Montreal Protocol and the WTO? (deposited 16. Jan 2009 06:52) [Currently Displayed]