This paper by the New Economics Foundation proposes to use economic including trade measures against industrialized countries that did not sign or apply the Kyoto Protocol. This could mitigate the competitive disadvantage born by the European countries who are internalizing the costs of meeting Kyoto targets.
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New Economics Foundation. 2003. Free Riding on the Climate: The possibility of legal, economic and trade restrictive measures to tackle inaction on global warming. http://www.neweconomics.org/gen/z_sys_PublicationDetail.aspx?PID=167.