Tuesday, October 4, 2022
HomeClimate411Why the EU’s Carbon Border Tax will Fail to Stop Carbon Leakage

Why the EU’s Carbon Border Tax will Fail to Stop Carbon Leakage

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The EU is once again attempting to impose a carbon tax on all imports, to stop “carbon leakage”, the loss of manufacturing or other businesses relocating to lower cost countries. But a few simple economic calculations demonstrate why the EU’s plan will not stop the ongoing haemorrhage of business activity.

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