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When a state or even congress issues a new tax on carbon emissions (or pollution credit system), some companies find it cheaper to continue or expand production levels by building a new plant in Mexico, where there are virtually no regulations and both labour and construction are much cheaper. This remains to be cheaper even with the cap and trade incentives to upgrade to cleaner production methods.My state of PA passed a similar law and numerous local companies outsourced production to Mexico. Could Gov. Rendell's and the DEPA's intentions to reduce global warming have done just the opposite?
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