Global Warming and the World Trading System

In This Review

Global Warming and the World Trading System
By Gary Clyde Hufbauer, Steve Charnovitz, and Jisun Kim
Peterson Institute for International Economics, 2009
166 pp. $23.95
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Many calls for legislation to reduce greenhouse gas emissions conflict with the existing world trading system. In particular, proposals to cap emissions and issue tradable emissions permits invite concerns about competitiveness and calls for protection against imports from countries with less stringent emissions standards. This specialized but important book examines, and questions, the compatibility of many cap-and-trade proposals with existing World Trade Organization rules. (It also provides a useful summary of the major scientific and economic uncertainties involved in confronting climate change.) The book sketches the main features of a proposed internationally negotiated code that would clarify current ambiguities and permit the world to confront climate change while still preserving an open trading system.