If a carbon tariff were not imposed, imported goods would significantly undercut the prices of those made domestically. Carbon tariffs remove advantages for companies producing goods using carbon-intensive energy sources. A carbon tariff system will encourage all countries to consider the environmental impact of production. This will encourage the “greening” of production methods, and it may have secondary, human, effects as well. American companies with overseas production operations would be subject to the import tax, just as foreign companies are.
A carbon tariff is of service to people in poverty by discouraging the use of pollution-heavy production methods that harm them, their access to food, and their environments. Only a worldwide implementation of carbon tariffs will significantly improve the lives of people in poverty, sparing them from being treated as expendable resources and rewarding them with a cleaner and more vibrant environment.