The First Carbon Trade War?

The European Union-or at least its feisty climate commissioner Connie Hedegaard-seems determined to take on the whole world by demanding that all airlines pay a carbon tribute for the privilege of crossing EU airspace and landing at EU airports. The tax, which will start being collected in 2013, would be levied not just on the miles flown over EU territory but for the entire length of the trip-thus, Indian or Korean airlines that traverse only a few hundred miles over the EU when traveling from Mumbai or Seoul would have to fork over taxes based on the entire trek of several thousand miles. All told, it is estimated that the EU would have taken in $1.2 billion from all airlines in 2012 had the new system been in place, a toll that rises to $3.6 billion by 2020. A sweet deal for EU coffers. 

Read the rest of the article here on the American.com

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About the Author

 

Claude
Barfield
  • Claude Barfield, a former consultant to the office of the U.S. Trade Representative, researches international trade policy (including trade policy in China and East Asia), the World Trade Organization (WTO), intellectual property, and science and technology policy. His many books and publications include Swap: How Trade Works with Philip Levy, a concise introduction to the principles of world economics, and Telecoms and the Huawei conundrum: Chinese foreign direct investment in the United States, an AEI Economic Studies analysis that explores the case of Chinese telecom equipment maker Huawei and its commitment to long-term investment in the US.
  • Phone: 2028625879
    Email: cbarfield@aei.org
  • Assistant Info

    Name: Hao Fu
    Phone: 202-862-5214
    Email: hao.fu@aei.org

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