Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Commerce Department imposes tariffs on Chinese solar panels
The solar industry is suffering from huge over-production glut worldwide due to the subsidies of the American solar panel industry by the U.S. government and the subsidies of the Chinese solar panel industry by the Chinese government. The Obama administration is desperately trying to protect its investment, before even more U.S. solar panel producers go bankrupt. Congressional Quarterly reported on May 17:
It may be too late to save Obama's investment in solar energy, the value of solar stocks is going through the floor with one company after another going bankrupt. The problem is that solar energy is only cost effective if given massive government subsidies, and the governments in Europe and North America are facing up to the reality that their funds are limited.
Comment by Dan, 5/21/2012:
A qouta would have been more desirable in this type of market. Also an increase in quality (standards for efficiency and useful life) would have worked better. Some of the standards may increse due to tarrifs but not the same way.
This is a big fight that pits utilities, manufacturers and consumers. It looks like the utilities have won the first round with keeping standards low and distroying some of the builders' market.
Comment by Larry Walker Jr., 5/21/2012:
Higher Prices = Less Demand = Anti-Growth for All
Comment by Jack, 5/22/2012:
You know what's really sad? Look at the shameful way our natural gas resources have been raped by Chesapeake and their management. Secret deals, draining billions from the balance sheet and selling futures to mask the theft. One day that 47 billion TXU leveraged buyout by GS & KKR will blow up and those futures contracts will be worthless.
Journal of Economic Literature:
Atlantic Economic Journal: