can countries who have a carbon tax compete against those that dont

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    That’s a pretty broad competition I think. In what industry are they competing? Even if we talk about manufacturing in general, there are many different countries with many different situations that you could compare. Compare anyone else to China, where environmental regulations are sorely lacking, and no, it is not likely that anyone can compete with Chinese mass production. I should add, however, that China does claim that they’ll have a carbon trading policy by 2013.

    But in general, I think you’ll find that countries with carbon taxes are already wealthier and/or first world nations. Finland and Sweden were among the first with a tax, and now the entire European Union has a carbon trading system. New Zealand, British Columbia and Quebec in Canada, and Boulder in Colorado (USA). Economically, they are still relatively well off next to the majority of the world.

    India has carbon policies as well, though most experts are skeptical about it because the infrastructure for the system’s enforcement is lacking.

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