'Not only does the logic show that carbon taxes in the West will invariably increase global CO2 emissions, but so does the empirical evidence...adopting carbon taxes in the West will actually raise global carbon emissions by offshoring economic activity from relatively environmentally-friendly places, like the USA and Germany, to places with lax environmental laws, like China. Open Markets & Offshoring, or How Carbon Taxes Raise Global CO2 Emissions. Wealth is like water: it flows to the lowest possible point, and continues to do so until the level is equal. This is why consumers chase cheaper goods, why investors look for undervalued companies, and why multinationals offshore to cheaper markets. This last point—offshoring—is why Western carbon taxes will actually increase global emissions.'