For #2, most proposals I’ve seen aim to put domestic products on a level playing field with products from countries without an equivalent tax with a “border adjustment”, a sort of tariff that’s based on the carbon intensity of the product (with a pessimistic estimate if they don’t know). This has the side effect of encouraging other countries to adopt similar carbon taxes.
The EU is implementing something like that, and we’re seeing an uptick in appetite in the US to implement a border adjustment here, partly as a result, there were a few bills put forward in the last Congress, though nothing has gotten very far yet.
The EU is implementing something like that, and we’re seeing an uptick in appetite in the US to implement a border adjustment here, partly as a result, there were a few bills put forward in the last Congress, though nothing has gotten very far yet.