The Trump administration recently implemented tariffs on imported solar panels. American solar panel manufacturers have pressed...

The Trump administration recently implemented tariffs on imported solar panels. American solar panel manufacturers have pressed for tariffs on imported solar panels for several years; however, companies that install solar panels are very much opposed to tariffs. Use the supply and demand model to explain why different players in the US solar energy industry have opposing views on tariffs on imported solar panels.

For more information, see the “President Trump Slaps Tariffs on Solar Panels in Major Blow to Renewable Energy” by Brian Eckhouse, Ari Natter and Christopher Martin 1/22/18 in Time at http://time.com/5113472/donald-trump-solar-panel-tariff/

Solutions

Expert Solution

The price of any commodity in the market is greatly affected by its demand and supply in the market .

Viewing the situation of solar panels in US, the cost of production the same is high in US as compared to what is imported from other countries like China. Therefore the price in the market of the solar panels is found to be low of the imported panel than what is domestically manufactured. And due to the lower prices the demand of the former is increasing. Concluding this situation the manufacturers of the solar panels domestically asked the Government to impose heavy import tariffs on the imported good which would subsequently increase the prices and would affect the domestic goods less.

The solar panel jnstallers are opposed to sych tariffs as the imported panels gave them more profits as low cost of the panels and heavy service charges for installation earned them greater profits than with the domestic manufactured.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

Mechanized solar panels: A field of mechanized solar panels with motors that allow panel frame motion...

Mechanized solar panels: A field of mechanized solar panels with motors that allow panel frame motion so that the panel themselves will be normal to incident radiation any time of the day. This design is expected to yield a power of 3.1 MW and will cost $101 million initially with first-year operating costs of $2.3 million, growing 300,000 annually. It will produce electricity worth $8.8 million the first year; this revenue stream is expected to increase at a simple interest...

President Trump has imposed tariffs on products imported from numerous countries and recently expanded the Chinese...

President Trump has imposed tariffs on products imported from numerous countries and recently expanded the Chinese tariffs. Do you think he is doing the right thing? What will the eventual consequences be of all these tariffs? Will we be better off or worse off as a result?

Recently, Trump administration implemented a fiscal stimulus to boost the US economy and fight the covind19....

Recently, Trump administration implemented a fiscal stimulus to boost the US economy and fight the covind19. Suppose that 1) output demand is inversely related to real interest rate; 2) nominal interest rate follows the fisher equation; 3) the Fed follows the Taylor rule in implementing the monetary policy to balance the inflation and the unemployment (GDP). 4)The public forms inflations expectations adaptively. 5) The pricing rule follows the expectation-augmented Phillips curve. Apply the DSGE framework to answer the followings: Derive...

You are concerned that Trump administration tariffs on China’s exports will provoke further retaliatory tariffs, and...

You are concerned that Trump administration tariffs on China’s exports will provoke further retaliatory tariffs, and may spur a trade war. You want to bet on this price change using a vertical bear spread. Use the calls below on November 2018 Soybean Futures below to bet on lower prices and reduce the risk of loss. • Call with a strike price of $10.40 and a premium of $0.45 • Call with a strike price of $12.40 and a premium of...

Canadian Solar (NASDAQ: CSIQ) and other solar panel manufacturers are facing a shortage of a key...

Canadian Solar (NASDAQ: CSIQ) and other solar panel manufacturers are facing a shortage of a key raw material used in the production of solar panels, polysilicon. Environmental regulators in China shut down several factories, triggering the shortage. The cost of polysilicon has risen by as much as 35% in the past several months. A kilogram of polysilicon went from $14 to $19 near the end of 2017. In addition to the rise in the cost of polysilicon, the selling price...

Consider the annual market for imported solar panels in Australia with an upward sloping supply curve...

Consider the annual market for imported solar panels in Australia with an upward sloping supply curve and downward sloping demand curve. Draw a diagram showing the annual market for imported solar panels in Australia. Include and label the demand curve, supply curve, equilibrium price and quantity. If the price was temporarily above equilibrium explain how it would return to equilibrium. If the $A depreciates so that importing goods is more expensive, show and explain any changes in demand or supply...

An Australian Solar Panel manufacturer exports panels to India at a price of 5,000 Indian Rupee...

An Australian Solar Panel manufacturer exports panels to India at a price of 5,000 Indian Rupee (INR). Currently the exchange rate is AUD/INR50.11. The forecast rate of inflation in Australia is 2.8% per year and 3.9% per year in India. Use this data to answer the following questions on exchange rate pass-through. 1. What was the export price for the solar panel at the beginning of the year expressed in Australian dollars? 2. Assuming purchasing power parity holds, what should...

In recent months the Trump administration has imposed and threatened to impose tariffs on China and...

In recent months the Trump administration has imposed and threatened to impose tariffs on China and Mexico. What have been the arguments he has made for imposing these tariffs? What are the likely impacts on US consumers, producers (both protected industries and industries that depend on these countries for production) , and the US government. What does the Trump administration hope to achieve by these policies? Are some of their concerns valid? Explain whether or not you think this in...

President Trump has raised tariffs on steel and aluminum imported into the United States. Answer both...

President Trump has raised tariffs on steel and aluminum imported into the United States. Answer both of the following: 1) What exporting countries are affected and how large are the tariffs? 2) What are the consequences for US industries and consumers? Note any differences among them in how they are affected.

A goverenment this past week imposed a 30% tariffs on Chinese solar panel imports. Assuming that...

A goverenment this past week imposed a 30% tariffs on Chinese solar panel imports. Assuming that this policy is extended to all imports from China, what will happen to the $/RMB exchange rate (all other things being equal)

Subjects