The Montreal Protocol is often cited as the most influential international environmental treaty to date. This agreement, which all 197 countries have joined, protects the stratospheric ozone layer by regulating the production and consumption of certain ozone-depleting chemicals (OCDs). It produced a new framework for international cooperation and has led to a gradual recovery of the ozone layer, which projections indicate will return to 1980 levels by 2040.
U.S. policymakers can gain valuable insights from studying the success of the Montreal Protocol and excise taxes targeting ODCs. This analysis identifies the key lessons learned from U.S. ODC strategy and applies them to considerations for designing an effective carbon import fee.