Global Warming and the World Trading System

In 2006, a team led by the English economist Sir Nicholas Stern issued a striking report that analyzed the economic dimensions of global climate change and called for immediate collective action to reduce greenhouse gas (GHG) emissions. This seminal report poses the critical question of how much emissions should be reduced within specific timeframes. To answer the challenge of finding a best-practices approach, Global Warming and the World Trading System looks at the economic aspects of GHG emissions and seeks a policy method to reduce them without adversely affecting global trade.

The book begins with a survey of relevant data―such as emissions reports per sector―and evaluates current US climate policy options, focusing on the intricacies of specific Congressional bills. In this vein, this study examines whether the competitiveness provisions now under consideration are compatible with the rules of the World Trade Organization (WTO) and explores the pragmatic opportunities the WTO should capitalize on in order to accomplish two goals simultaneously: ensure "policy space" for countries to limit national GHG emissions without sacrificing the competitive position of their own industries and preserve an open trading system relatively free of discrimination and opportunistic protectionist measures. Should governments use trade measures to encourage other countries to cooperate in the adoption of environmental policies? The authors anticipate the potential negative environmental and economic outcomes as well as the disputes over violation of GATT articles. This book addresses how to avoid serious setbacks in an effort to reduce emissions without compromising the status of both domestic and international carbon-intensive industries. Most importantly, the book considers what can be done by environmental organizations to head off conflict with the WTO.

Gary Clyde Hufbauer, Reginald Jones Senior Fellow since 1992, was formerly the Maurice Greenberg Chair and Director of Studies at the Council on Foreign Relations (1996–98), the Marcus Wallenberg Professor of International Finance Diplomacy at Georgetown University (1985–92), senior fellow at the Institute (1981–85), deputy director of the International Law Institute at Georgetown University (1979–81); deputy assistant secretary for international trade and investment policy of the US Treasury (1977–79).

Jisun Kim was a research analyst at the Peterson Institute for International Economics. Her areas of research at the Institute included international trade, international tax, and climate change issues. She previously worked as a tax consultant (US CPA) at PricewaterhouseCoopers in Seoul, Korea. She received her MA degree in international relations, focusing on global markets and Asia, from the Maxwell School of Syracuse University.

Steve Charnovitz is an associate professor of law at The George Washington University Law School. Before joining the Law School faculty in 2004, Professor Charnovitz practiced law for six years at Wilmer Hale in Washington, D.C. From 1995 to 1999, he was the director of the Global Environment and Trade Study (GETS) at Yale University. From 1991 to 1995, he was the policy director of the U.S. Competitiveness Policy Council. The Council issued four reports to the U.S. Congress and president. From 1987 to 1991, he was a legislative assistant to the speaker of the U.S. House of Representatives (Wright and Foley). Earlier in his career, he was an analyst at the U.S. Department of Labor where his assignments included worker rights in U.S. trade negotiations, trade adjustment assistance, and technical cooperation with Saudi Arabia.