Comment by jmye
13 hours ago
My country mines rare earth metals. Your country processes them into computer chips. Joe and Jane's country want those computer chips to fuel their economy.
Who's getting fined, here? Me, because mining the stuff is inherently dirty (without, probably, significant research and capital investment)? You, because you need the stuff to build other stuff? Joe and Jane because they're the ones ultimately driving the production of the stuff? If you fine me into not producing the raw materials, what, ultimately happens to your economy and Joe and Jane's? If I don't sign up, where are you going to get the raw materials, if I'm tariffed into oblivion?
Sorry, I'm not trying to like, doom this away - but there are so many interconnected pieces, that I don't think it's a problem that can even start to be solved from an internet comment. At some point, voters in democratic societies need to decide that they care as much about the world their children will inherit as they do a ten cent difference in gas prices ten minutes from now. It's unclear that they ever will on a long term, consistent basis.
Nobel memorial prize winning solution: https://www.aeaweb.org/articles?id=10.1257%2Faer.15000001
Rationally, you apply fines as close to the source as possible. Because they will pass those costs up the stack.
But the source could be the most likely place for corrupt reporting. Or: Maybe the source element is not dangerous but downstream by-products are.
Like you’ve said: It’s a problem.