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How Global Trade Can Survive Carbon Border Adjustments

2020-06-04 Milken Review

Henrik Horn, IFN, writes about Carbon Border Adjustments in the Milken Review:

"Putting a price on carbon emissions in order to internalize the externality is the economists’ go-to prescription for addressing global climate change. So it’s ironic that another orthodox economics prescription for societal welfare — free trade — appears to stand in the way of implementing the textbook climate solution. But there just might be a way to thread the needle to allow market-based solutions to reach their full climate mitigation potential."

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