Would carbon tax make manufacturing in the developed world more competitive?
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A new study by the Canadian bank CIBC World Markets predicts upcoming carbon taxes will change international trade patterns. Surprisingly, manufacturing in the developed world might become cheaper and more competitive. So how does a carbon tax relate to “green” collar jobs?
With oil prices skyrocketing and energy efficiency measures mandated via carbon taxes, energy savings in the developed world might offset the higher costs of labor.
“And the reason [energy-intensive industries that went where labor is cheapest] will be coming back is because in most of these industries, North America is much more energy- and carbon-efficient than the developing world is,” said the report’s author, Jeff Rubin.
The catch, however, is that countries like China would either have to tax carbon or the developed world would have to impose tariffs as a penalty.
By Stefan Deeran at The Element Agency in New York