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Carbon labels: climate change regulation and legal risks and opportunities under WTO law

In: Regulatory Reform in China and the EU

Author

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  • Stefan E. Weishaar
  • Ruohong Chen

Abstract

Market-based instruments such as emissions trading systems put a price on carbon emissions as a way of addressing climate change. Increasing production costs have led to fears of carbon leakage and have generated increased interest in WTO law, in particular in the area of border tax adjustments and subsidies. Research in the area of carbon labels was more in vogue several years ago, but owing to the recent developments in WTO case law regarding Technical Barriers to Trade (TBT), and in light of the proliferation of Emissions Trading Systems around the globe, it is high time to re-examine carbon labels and how they are to be assessed from a law and economics perspective. This chapter explores the legal risks and regulatory opportunities of carbon labels under WTO law, and whether WTO law follows law and economic insights.

Suggested Citation

  • Stefan E. Weishaar & Ruohong Chen, 2017. "Carbon labels: climate change regulation and legal risks and opportunities under WTO law," Chapters, in: Stefan E. Weishaar & Niels Philipsen & Wenming Xu (ed.), Regulatory Reform in China and the EU, chapter 10, pages 235-264, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:17175_10
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