Can the US best reduce global CO2 emissions by reducing trade with China?
I think this question is somewhat backwards: if CO2 emissions are priced into the cost of goods, American producers will have a competitive advantage over China and imports from China will be reduced. China has a smaller economy than the USA despite greater CO2 emissions and 4 times the population. This says something about efficiency and competitive advantage. Whether trade is reduced is another question. China could just as easily trade US bonds for goods as the reverse. This might not fit with China’s policies, but the current policy isn’t in the interest of the USA or the world so it makes no sense to continue it.
