Arik Levinson

Tariffs Are a Weak Climate Tool Without International Coordination

At a Hoover Institution panel on tariffs, trade and the environment, economists Joseph Shapiro, Arik Levinson and John Cochrane argued over when trade policy can legitimately serve climate policy. Shapiro made the case that tariffs may help enforce international climate coordination in a world without a global carbon regulator, while Levinson warned that much of the case for environmental tariffs rests on overstated claims about outsourced pollution and becomes especially weak when applied to clean technologies. Cochrane pressed the standard economist alternative: price carbon, adjust at the border, and avoid using climate as cover for industrial policy.