Norway’s Butter Shortage and the EU’s Airline Emissions Scheme

Butter

Much of the world is poking fun at Norway for their butter shortage.

Research Associate Daniel Rivera comments.

“While the diet combined with unfavorable conditions for dairies has limited the amount of available domestic butter, it doesn’t address the biggest issue for the limited quantities of the good: trade regulations. Since Norway is not part of the European Union, imports from other nations are subject to tariffs and other protectionist restrictions. Butter tariffs in Norway equaled 25 kroner per kilo (about US$ 4.25), effectively eliminating any incentive to import butter from abroad. While the tariff was lowered to four kroner in December allowing Norway to import more than 750 tons of butter for consumers and 1,000 tons for industry, it will do little to solve the shortage, as it will take time for butter to become available to consumers.”

Airline Emissions Taxes

The U.S. has urged the European Union not to implement their airline emissions trading scheme.

Adjunct Scholar Fran Smith explains.

“The U.S. sent a strong letter to the European Union warning them that the EU’s airline emissions trading scheme — set to start in January 2012 — should be halted or postponed. If not, the letter from U.S. Secretary of State Hillary Clinton said, “. . . we will be compelled to take appropriate action.” According to the Financial Times (registration required), 42 other countries, including major economic powerhouses, such as China and Brazil, signed onto the letter, which seemed to be timed just before the EU’s highest court renders its decision.”