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Re:Government Report Finds Drastic Impact of Climate Change ... by rory096 on Tuesday August 08, 2017 @08:43AM (#14957183)
Consumption is already subsidized in those countries by not internalizing the carbon externality. The border adjustment puts US exports on a level playing field with other products in that country, saving the distortionary effects of imbalanced taxes. Meanwhile, the import tax adjustment makes sure that goods from that non-complying country aren't at an unfair advantage.

But of course optimally all countries pass a similar carbon tax in the medium term so border adjustments are unnecessary.

Re:Government Report Finds Drastic Impact of Climate Change ... by em3rgent0rdr on Tuesday August 08, 2017 @01:33PM (#14960239)
I'm not sure more subsidies are the best way to combat subsidies. I worry such export subsidies will cause consumers in those countries to increase consumption and make those countries reluctant to pass a similar tax.
Re:Government Report Finds Drastic Impact of Climate Change ... by rory096 on Tuesday August 08, 2017 @02:58PM (#14961292)
Those countries already have outsized consumption because carbon externalities are not priced in. Failing to border adjust a domestic US carbon tax would incentivize them to import less, not necessarily consume less.