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Isn't this a prime example of how protectionism of nascent industries makes sense? Convolt seems to indicate they would have been able to deliver on time if pa
by jszymborski 2y ago
Isn't this a prime example of how protectionism of nascent industries makes sense?
Convolt seems to indicate they would have been able to deliver on time if panel sales hadn't plunged 50%. Wouldn't heavy tarrifs on Chinese panels make a lot of sense here then?
I understand we need expansive solar yesterday, but that's even more of a reason to ensure we have the capacity to manufacture.
- tardy_one 2y agoAh yes, signalling on what we would have done.. Well, I'd totally have delivered panels if Convolt and Chinese companies were banned a few years ago. Make the market exclusive to me and I'll look into what the profit will be if I start producing them. I'll also be sure to prevent the domestic installer industry from taking advantage of low prices, only a small number of authorized ones will pay enough kick backs to have any availability. But its not all economic loss, the repair industry will need to be a lot better with my exclusive US panels.
- bastawhiz 2y agoAre tariffs the right answer? That raises the cost of solar, and cheap solar is ultimately everyone's goal. Shouldn't we instead be subsidizing solar production, contingent on companies like Convolt meeting delivery and efficiency targets? Which is to say: Convolt complained about a drop in prices of 50%. Are we really willing—as a country—to double the cost of solar because our domestic companies haven't scaled up? This seems like a recipe for killing momentum around renewables. Moreover, can you put tariffs on panels made domestically by a Chinese company? The panels aren't imported or exported. I suppose you could tariff foreign manufactured panels and components to fund subsidies to domestic companies such that the two equalize in cost.
- jszymborski 2y agoTarrifs don't preclude subsidies, and can often help fund them. As I said, while we need solar yesterday, can we really afford to not have it tomorrow because we failed to create a competitive industry? > Moreover, can you put tariffs on panels made domestically by a Chinese company? The panels aren't imported or exported. Foreign ownership of many strategic industries are tightly controlled.
- megaman821 2y agoMaybe this makes a tiny amount of sense when talking about imports, but if Chinese-owned factories in the US are outproducing American-owned factories, then China just has a better, more efficient system for producing solar panels. Maybe they should up their game instead of complaining about competition.