Climate Policy
Columbia Business School Spring 2026 A-term course

Columbia Business School Spring 2026 A-term course
Columbia Business School Case
While the broader Inflation Reduction Act will substantially cut carbon emissions, the new tariffs on Chinese EVs will have the opposite effect. They risk derailing the transition to EVs, and they pit U.S. middle-class consumers against auto workers and shareholders.
While the availability of cheap electric vehicles is good news for the planet and for consumers everywhere, it is bad news for shareholders and employees of Western car companies, and both the United States and Europe are considering imposing import tariffs on Chinese EVs. But tariffs are the wrong approach.
With China’s economic growth slowing at the same time that its emissions continue to rise, it is clear that its carbon-intensive investment model has run its course. Chinese leaders urgently need to follow advanced economies in shifting toward greater domestic consumption and reduced energy demand.
India, not China, will soon be the most significant counterweight to the United States in global climate negotiations.
Production-based energy use follows an inverse U-shape, consumption-based energy use does not.