Carbon Tax To Reduce China
Krugman accuses China of playing games with its overvalued currency. He threatens trade sanctions.
Instead of talking sanctions, why don't we talk carbon tax? That would be more polite.
Let me explain for those who are not in the know: any item bought from China has a hidden cost in carbon pollution which is much greater than in goods locally produced (no transportation costs) and, moreover, China uses much more very polluting coal to produce said goods. By slapping on Chinese goods the cost of this pollution that everyone pays for one could cripple Chinese trade. And Chinese pollution is a serious problem, not just in China: it's a major contributor to pollution, worldwide, even in the Arctic, where mercury vapor from burning Chinese coal poisons the sea life.