In 2006, a team led by the English economist Sir Nicholas Stern issued a
striking report that analyzed the economic dimensions of global climate
change and called for immediate collective action to reduce greenhouse
gas (GHG) emissions. This seminal report poses the critical question of
how much emissions should be reduced within specific timeframes. To
answer the challenge of finding a best-practices approach,
Global Warming and the World Trading System looks at the economic
aspects of GHG emissions and seeks a policy method to reduce them
without adversely affecting global trade.
The book begins with a survey of relevant data--such as emissions
reports per sector--and evaluates current US climate policy options,
focusing on the intricacies of specific Congressional bills. In this
vein, this study examines whether the competitiveness provisions now
under consideration are compatible with the rules of the World Trade
Organization (WTO) and explores the pragmatic opportunities the WTO
should capitalize on in order to accomplish two goals simultaneously:
ensure "policy space" for countries to limit national GHG emissions
without sacrificing the competitive position of their own industries and
preserve an open trading system relatively free of discrimination and
opportunistic protectionist measures. Should governments use trade
measures to encourage other countries to cooperate in the adoption of
environmental policies? The authors anticipate the potential negative
environmental and economic outcomes as well as the disputes over
violation of GATT articles. This book addresses how to avoid serious
setbacks in an effort to reduce emissions without compromising the
status of both domestic and international carbon-intensive industries.
Most importantly, the book considers what can be done by environmental
organizations to head off conflict with the WTO.
