“From the East Coast to the West and across the political spectrum, House lawmakers remain divided over how to protect America from losing a competitive edge to China and other nations under climate change legislation.
“At issue is how to prevent cement, steel, aluminum and other energy-intensive industries from responding to proposed new laws that could have the effect of slashing emissions by shuttering factories only to reopen them in countries unfettered by costly regulations.”
– Lisa Friedman, “Climate law poses trade risks; lawmakers unsure how to respond” E&E News, April 28, 2009 (subscription)
Marlo Lewis’s post, Is Cap-and-Trade Inherently Protectionist?, linked carbon dioxide regulation, U.S.-side tariffs (“border adjustments”), and international protectionism. Indeed, the interventionist dynamic–regulation expanding from its own complications and shortcomings–is a major theme of political economy.…