Thoughts on business school, economics, NC State, and everyday life from an economist at NC State's business school
Tuesday, March 20, 2012
Tariffs on solar panels
Just as Americans are paying near $4/gallon of gasoline, today the U.S. Commerce Department announced that it was imposing tariffs on Chinese manufacturers of solar panels. The tariffs are being imposed because -- horror of horrors! -- the Chinese government was subsidizing their own solar panel manufacturers. Even worse (in the Fed's eyes at least), the Chinese were selling panels to American customers at prices below cost. No word yet on how big the tariffs will be, but certainly we can count on the cost of solar panels rising. Politically this is a bit of a head-scratcher; it should alienate the environmental crowd and there is no union of solar panel makers to placate.
Steve Allen is Associate Dean for Graduate Programs and Research in the College of Management at NC State University. He has appointments in the Department of Economics as well as the Department of Management, Innovation, and Entrepreneurship. Steve also is a Research Associate of the National Bureau of Economic Research, a non-profit research organization located in Cambridge, Mass.