Daniel C. Esty and Steve Charnovitz
Incoherent U.S. energy and climate policies have cast a pall over the entire economy and are putting U.S. companies at a serious global disadvantage. The authors offer 10 prescriptions for reforms, two of which they describe in detail. First, they argue that the U.S. should impose a gradually increasing carbon charge; this would help internalize environmental costs, drive investment in energy efficiency, encourage innovation in renewable power, and raise substantial revenues that could reduce the national debt. Second, they say, the government should curb or redirect unwise energy subsidies and increase funding for clean-energy R&D. Environmental stewardship need not be an economic burden, they emphasize; on the contrary, investing in sustainability can enhance corporate and national competitiveness.
Read the article here.
Read the working paper, "Environmental Sustainability and Competitiveness: Policy Imperative and Corporate Opportunity", here.
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22 Jul 2014 - The Wall Street Journal
Some tax experts testifying at Tuesday's hearing cautioned that narrow legislation could prove counterproductive even if it successfully deters some companies from reincorporating overseas. For instance, raising the threshold of a foreign company's ownership for inversions could prompt bigger foreign companies to get involved in the transactions. That could result in the U.S. portion of the company shifting more of its jobs overseas, including high-paying headquarters jobs, said Mihir Desai, finance professor at Harvard Business School.
22 Jul 2014 - The New York Times
Mihir A. Desai, a professor of law at Harvard University, said punitive legislation could be counterproductive.
"Legislation that is narrowly focused on preventing inversions or specific transactions runs the risk of being counterproductive," he said. "For example, rules that increase the required size of a foreign target to ensure the tax benefits of an inversion can deter these transactions but can also lead to more substantive transactions."
22 Jul 2014 - CNBC Squawk Box
Mihir Desai, Harvard Business School professor, shares his thoughts on corporate tax reform ahead of Tuesday morning's Senate hearing.