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Wilcoxen article on China's carbon tax and climate talks published in East Asia Forum

Mar 18, 2013

China’s Carbon Tax Highlights the Need for a New Track of Climate Talks

Adele C. Morris, Warwick J. McKibbin & Peter J. Wilcoxen

East Asia Forum, March 2013

Peter Wilcoxen

Peter Wilcoxen

Although the statement was vague about the timetable and the tax rate, the mere prospect of China pricing carbon should have prompted swift laudatory international responses, especially by countries that have long hectored China to take stronger action on climate.

China’s announcement, and the underwhelming response of the international community, shows that it’s time to start an international conversation about pricing carbon and that anyone who’s interested should be invited aboard. A Carbon Pricing Consultation (CPC) would allow China and other countries that want to price carbon (via a carbon tax, cap-and-trade system or a hybrid approach) to learn more about it, exchange views, find out what other countries are considering, and potentially coordinate their policies.