Despite the concern about carbon-intensive imports from China, they account for less than 10 percent of all but cement imports. Canada is the largest foreign source of all carbon-intensive imports except chemicals, where it ranks second only to Trinidad and Tobago. Canada accounts for more than half of U.S. paper and aluminum imports, compared with China at 3 percent. That said, it is important to note that over the past 15 years, more U.S. carbon-intensive imports have come from developing countries. How this trend translates into competitiveness of U.S.

The United States runs a trade deficit in all five carbon-intensive industries included in the Peterson Institute for International Economics/WRI report "Leveling the Carbon Playing Field", despite running a trade surplus in certain product lines. Aluminum is, by far, the most exposed to trade, with net imports accounting for 60 percent of U.S. consumption. But even in cement, long considered the classic “nontradable,” foreign producers meet nearly 25 percent of domestic demand.

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Solar photovoltaic systems generate electricity using technologies that capture the energy in sunlight. Many parts of the United States—especially the Southwest—have abundant solar resources (see Figure 5, which shows estimates of the average daily total radiation for flat plate solar collectors). Before investing, however, firms should commission a thorough professional study of a specific site’s solar resources. Even if it reveals lower or moderate resources, solar power could still be financially attractive, depending on financial incentives and regulatory context.