How will climate policy impact American trade competitiveness?
Over the coming decade, countries around the world will adopt a variety of climate policies to impose costs for greenhouse gas (GHG) emissions. Since these policies will vary in form and stringency, the costs they impose on manufacturers will not be uniform across all nations. Although a global patchwork of climate policies could disadvantage specific American industries, policy leadership would provide the U.S. economy with an early signal for rising fossil fuel costs and supply constraints, potentially improving future competitiveness of domestic industries. A global, carbon-constrained future will demand a shift to low-carbon energy technologies and business models. Past experience in renewable energy and efficient vehicle technologies has seen companies profit from strong regulatory environments at home to build competitive advantage abroad. Uncertain domestic policy will not serve companies well in the medium to long term, as other countries will build markets for low-carbon produ
