This article originally appeared at The George W. Bush Institute. Click here to read the full article.
By Ike Brannon
The New York Times reports that the E.U. Parliament has elected to not remove carbon tax credits from the market, despite the price plunging from a peak of nearly €30 per ton to below €3 at present.
The reason for the decline in price is that economic activity in the E.U. has decreased markedly since the onset of the Great Recession. In addition, the broader sectoral shifts in the economy have concomitantly reduced employment in the manufacturing sector across the globe. Meanwhile, the surviving manufacturing jobs have migrated to lower-cost locales in southeast Asia.