Incompatibility of International Carbon Taxation with WTO Laws: Making a Case for a Separate Multilateral Treaty

Periodic Research (P: ISSN No. 2231-0045 RNI No. UPBIL/2012/55438 VOL.-7, ISSUE-4 (Part-1) May-2019 E: ISSN No. 2349-9435 )

 Abstract



Ganesh Prasad Pandey

 Assistant Professor, Deptt. of Law, Chanakya National Law University, Patna, Bihar, India

“Today when environmental protection has become a global concern, a conflicting interaction between economic policy of the nations and need for environmental protection is bound to happen. This is primarily because fossil fuels are the major drivers of production and are also major source of green house gases emission. In economic theory, pollution being a negative externality can be countered through taxation which can provide for incentives to shift production to environment friendly methods. However if any country tries to impose such a tax on the basis of carbon footprint, it will lead to carbon leakage as manufacturers will shift their production to other country where no taxes are imposed on carbon footprint of the product. Moreover any such unilateral imposition of carbon tax by a country will be perceived as a trade barrier and would attract WTO disputes. This article seeks to assess the international regime of such carbon taxation while analysing the impact and effectiveness of any unilateral carbon tax imposition by a country to the conclusion that there is an urgent need for a separate multilateral treaty with respect to carbon taxation in order to achieve the goal of environmental protection.

 

for full paper please visit below link http://socialresearchfoundation.com/upoadreserchpapers/2/299/2001030828381st%20ganesh%20prasad%20pandey.pdf

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