Tim Worstall, April 7, 2013 (Forbes)
“…Assuming that we think that there should be solar panels all over the place, that renewables are indeed to be deployed, then of course governments should have every tool at their disposal to incentivise it…[C]heap imported solar panels [should be] available so that installing solar panels is cheaper…The madness in the environmental movement is t0hey are, instead, insisting that…governments not only can, but should, insist that people must buy and install more expensive panels…[This price and demand] will mean fewer panels installed and less renewable energy…exactly the opposite of what we want if we’re to reduce fossil energy use. “…India has rules insisting that panels are made out of local, Indian [though more expensive are] made, components and assembled locally. The US Government is pursuing a WTO case saying that no, the rules are that you cannot do that. It must be possible for Indians to buy [cheaper] American made components and systems too…[I]f you’re an environmentalist who wants to have as many panels installed as quickly as possible…[you should be backing the U.S. so what sort of madness is it that has them siding with the Indian government?”
click to enlarge “…Both the US and the EU are entirely crazed on the subject…Both have import taxes (or are at least about to impose them) on Chinese made panels. 60% in the case of the EU. Which is simply insane. Both governments are subsidising the installation of solar panels…[Instead of going for] those cheap panels…The actual response is to slap a tax on them to make them more expensive…and increase the subsidy that must be paid for their installation…[This is] crazed behaviour. “The actual argument used is that the Chinese government subsidises the Chinese manufacturers…Currently American taxpayers and consumers have to subsidise American producers. EU taxpayers and consumers have to subsidise EU producers…[Then the Chinese government says] we’ll make it so that Chinese taxpayers have to subsidise US and EU consumers and taxpayers. The correct response here is…‘Thanks very much. Send us some more.’ …[But they] tax the cheap imports and thus reject that free money on offer…[T]there’s something about renewables and solar panels that just sends people mad.”
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