This past summer when the Senate debated the Lieberman-Warner cap and trade plan, conservatives (and libertarians) were alone in fighting to expose the lie that cap and trade is anything other than a massive energy tax that can only harm our economy. Now, more and more on the left are wising up and taking a more honest approach. Yesterday in the Wall Street Journal, Ralph Nader and Toby Heaps wrote:
Cap-and-traders assume, without much justification, that one country can put a price on carbon emissions while another doesn’t without affecting trade or investment decisions. This is a bad assumption, given false comfort by the Montreal Protocol treaty, which took this approach to successfully rein in ozone-depleting gases. Chlorofluorocarbons are not pervasive like greenhouse gases (GHGs); nor was the economy of 1987 hyperglobalized like ours today.
Good intentions to limit big polluters in some countries but not others will turn any meaningful cap into Swiss cheese. It can be avoided by relocating existing and new production of various kinds of CO2-emitting industries to jurisdictions with no or virtually no limits. This is known as carbon leakage, and it leads to trade anarchy. Continue reading . . .