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These Tiffs Over Electric Vehicles Are Not What They Seem
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These Tiffs Over Electric Vehicles Are Not What They Seem

Robinson Meyer
The New York Times, 2023
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Trade conflicts among countries are becoming a critical feature in the race toward decarbonization, says climate journalist Robinson Meyer in this illuminating article. Calls to address climate change have typically appealed to safeguarding the public good, but opportunities to jumpstart new green industries and secure market positions in crucial components are now creating friction among trading nations. Meyer explains what’s at stake – both geopolitically and economically – for Europe, China and the United States in tackling climate change.

Summary

Protectionism is creeping into climate change policy. 

European officials bristled at America’s passage of the Inflation Reduction Act in 2022, which calls for a minimum of $370 billion for climate initiatives in hydrogen technology, solar panels and zero-carbon aviation fuel. One of the Act’s provisions, a $7,500 tax credit for electric vehicles, is strictly for North American-assembled vehicles with primarily US batteries produced with US- or partner-sourced minerals.

It’s clear that a healthy environment is a public good. Yet economists have long understood the interrelationship between nonrenewable energy consumption and economic growth, and many saw it as a trade-off. Countries could either...

About the Author

Robinson Meyer is the founder and executive editor of Heatmap News, a media concern focusing on climate issues.

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