The Export Clause of the Constitution prohibits the taxing of “Articles exported from any State.” In this paper I examine the effect that Export Clause jurisprudence might have on the choice of national carbon dioxide mitigation policies. I conclude that it is unlikely that a “downstream” price on carbon dioxide emissions could include exported hydrocarbons. One corollary is that, since cap and trade policies are “downstream” pricing mechanism, it would be difficult, perhaps impossible, to craft cap and trade so as to cover exported hydrocarbons. In contrast, an “upstream” carbon tax does not suffer from this constitutional infirmity. I therefore conclude the paper by making some suggestions as to how an “upstream” carbon tax might be crafted with Export Clause limitations in mind.
- Carbon Tax,
- Export Clause,
- Cap and Trade,
- Climate Change
Available at: http://works.bepress.com/ross_astoria/4/