Commentary: EU to impose anti-dumping tariffs on Chinese solar panels.
Free trade versus protectionism is a topic of great debate in internal economics. The former takes place when there are no barriers to trade established by the government or international organizations. On the other hand, protectionism is the use of barriers to imports in a determined country and it is usually applied to protect domestic employment and firms.
According to the article, China is being accused by the EU of dumping, defined as the selling by a country of large quantities of a commodity, at a price lower than its production cost, in another country. In the case the accusation was proved, the government is allowed, under international trade rules, to
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Secondly, now the EU would produce Q1-Q3 units of Solar Panels in a more inefficient way compared to China, and thus “c” represents the inefficiency of the domestic producers and a loss of world efficiency.
Another issue with this measure is the creation of trade diversion with regards to Germany. As a member of a custom union the imposition of the tariffs to China are also compulsory for Germany, which is by far China’s greatest partner in the EU and, therefore, the production of Solar Panels for Germany would move from a low-cost producer outside the union to a high-cost producer inside the union.
Before the EU imposed the tariff, Germany would produce 0-Q1 units of Solar Panels domestically and would import Q1-Q4 units of Solar Panels from China. Now with the new tariff, Chinese Solar Panels become more expensive than those produced in the EU. This would make Germany to produce 0-Q2 units of Solar Panels itself and import Q2-Q3 units from the EU. Now there is an overall fall in the quantity demanded of Solar Panels of Q3-Q4 units and so a loss of consumer surplus.
Moreover, a misallocation of the world’s resources is produced since Q1-Q2 units of solar panels are now being produced by less efficient German producers and the production of Q2-Q3 units has transferred from efficient Chinese producers to relatively inefficient EU producers.
It is true that, if the EU can prove that dumping has damaged its industries, they are allowed,
It creates contrasts between the pros and cons of the new system, while adequately describing the solar power market situation at the same time. The author is a writer for Maclean’s who concentrates on technical news and issues. This article has a tendency to concentrate more on the political aspect of the solar initiative, and shows bias as to why these devices may not be of great use. It sights sources whose viewpoints are correct, however they do not meet fully with the concept of the device and its purpose, and are therefore void in context. This is advantageous to those seeking to contrast viewpoints, as the views displayed in the article are easily disqualified due to their lack of knowledge. In addition, the article gives a contrasting method of energy storage. The article was found while searching for solar energy storage on
China had seem to divide Germany and the rest of European Union as the trading bloc, a group of countries that have agreed to reduce tariff and other barriers to trade for the purpose of encouraging free trade and cooperation, is planning to impose tariff on China’s solar panels. Tariff, tax that is charged on imported goods might alter the free trade situation illustrated in Figure 1.
It happens between foreign and larger economies that enter into an economy by selling their products at a lower price than the cost of production in order to force rival organizations in United Kingdom out of the business. This will result customers of that particular economy will be purchasing more than customers in overseas. For instance, protectionism will prevent Sainsbury’s of using dumping to take over the business lead by selling their price lesser than it cost in order to force other organizations in United Kingdom out of the business. Furthermore, protectionism protects unemployment which is an advantage towards company and country. When there is a cheaper import, people may not purchase the products that is made in their country, this may lead local manufacturers and industries to decrease their production as the demand of the customers have decreased therefore it will leads to workers becoming inessential which cause unemployment increase and industries shutting down.
Solar Resources are not only affecting the GDP for power, but in other areas as well. Over a million residential water heaters are replaced each year and more are being replaced by using solar power. The solar power is given an opportunity in use solar power as the primary heating source for homes and commercial buildings. Which can increase the amount of GDP that is spend, yearly on solar and a large share of the energy market.
Canadian Solar which is a traded solar cell and module manufacturer has experienced recent strong growth. Despite 2009 fluctuations in the solar industry namely for PV technology, the growth has been fuelled by Government incentives programs to encourage solar PV technology. The Solar industry is now highly competitive and companies follow an industrial organizational model. This is because they all compete mainly in PV technology, and this market is hinged on Government initiatives and renewable support schemes. Also, the international markets such as Spain (FIT) and Germany ( EEG law) influenced the companies ' strategy in terms of rates changes, over supply in 2009 among others.
If all the details Xia case were presented to the WTO, the organization would have went with the ruling of the ban on Import of the goods in the country until the further investigation and tests on the toys and the material used in it, though the product was imported to many other countries but the report had been filled from one country only who had the major market share of it, WTO would hold for some time on the decision till the other countries give their view on this too. Because cannot take final decision on the basis of unofficial report as it would have been injustice with the manufacturing country as it can effect there other exporting products too. But the Chinese way of handling the situation, by banning soybeans that were mostly being imported from Brazil, could raise the questions of molding the situation by China to divert their mind from one issue to another.
“Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States”
First, one of the restrictions to free trade is tariff. According to Menlo-Atherton High School (2015), a tax that is put on imported goods from abroad is known as tariff. Tariff is used to raise the price of imported goods so that the domestic producers can sell their similar goods at higher prices. Domestic government will be the one collecting the money that is received from tariff. Protective tariffs and revenue tariffs are the types of tariff. Protective tariffs are put on imported goods so that it will be more expensive. It is used to protect the domestic industries from the competition of foreign firms. Revenue tariffs are used to raise money for government (Menlo-Atherton High School, 2015). The benefit of tariffs are uneven due to tariff is a tax. Besides that government is benefited, domestic industries are benefit from it as well due to the reduction of competition from foreign productions. It is because of the increased prices of the imported products. However, it is unfortunate for the consumers because the higher price of goods is due to higher import price. Tariff tends to bring advantages for government and producers but not to the
In this scenario, the U.S. government has imposed these tariffs in order to make Chinese solar products relatively costly. This increased prices on these products will in turn reduce the demand for Chinese made solar products in the United States. Also, with the tariffs and reduced supply, this will increase the equilibrium price of solar products in the United States. These increased prices will allow for more U.S. producers to compete in the U.S. solar products market. With this type of activity, the government is hopeful that this will help U.S. domestic producers become more competitive. And, hopefully this will create more jobs for U.S. workers.
Akarslan’s book is about solar energy that is used around the globe. Focusing on the pros and cons of the solar panel, Akarslan links that the most controversial green technology isn’t holding up to its reputation. He goes into depth of each time period to explain the direction and development of the solar panels. Akarslan sheds light on the negative effects that have been masked by the positive effects that society focuses on. He links key scientific development of the solar panel and demonstrates how we can change part of the solar panel so that it would cause less harm to the environment. For example, there are many ways to create a solar panel, all being different by the material we use to compose to device, and increasing the efficiency
Solar cell or photovoltaic (PV) systems usually transformed energy from the sun in to electric current. It can be measured in terms of ‘‘conversion efficiency’’, the proportion of solar energy transformed to electricity. (Henderson, Conkling, & Roberts, 2007) Sunpower primarily focused on the production of solar cell. But by moving in to wafer manufacturing it soon incorporated in to manufacturing of solar power module units. In general Sunpower manufacturing process needed approximately two times as many steps as the usual solar manufacturing process need and many of these steps were distinctive to Sunpower. Sunpower has nearly 15 -20 established cell manufactures, a handful of silicon – based cell manufacturing upstarts and a number of thin film solar companies offering potentially unsettling technologies.
Fossil fuels are destroying our world when the technology is present to stop this. Luckily in the past fifty years’ fossil fuel use has declined and is steadily declining more. Nonrenewable energy has worked, but it is primitive, in the future it will only be something of the past. But with the most support renewable energy can become a worldwide power source. Europe uses so of the most wind energy production process, so when will we? But one other type of renewable energy is becoming solar power. All energy comes from the sun, why not get our energy straight from the source, but materials to produce solar panels are very rare and expensive. Let’s make a change and
Solar energy is already efficient with the environment; however, in order to solve this problem, we need to improve its efficiency with energy. In order for solar energy to be considered energy efficient today, we have to make the proportion of kilowatt hours produced over cost needed for it less than the proportion of this to fossil fuels. For example, in order to produce 1 kilowatt-hour or 3.6 megajoules, we need 50 cents. However, for coal in order to produce 1 kilowatt-hour for coal, we only need about 3 cents. Over the years, we have been decreasing the price little by little to now 18-30 cents, but this still cannot compete with fossil fuels that are all less than 10 cents. In order to solve this problem, we would need to improve the amount of energy received from the solar cells. We could achieve this by finding alternative materials to use on the cells to expand the
Euro Solar is a well-known Solar Panel Company. It is Australian based company. Euro Solar started with 4 employees and a 100 m¬¬2 warehouse around 6 years ago. The company is focused totally on high quality products and market-leading customer service. Euro Solar is very well aware of the energy derived from the sun and they are committed to make sustainable energy a significant part of Australia’s and the world’s future and they continue to look for solar energy solutions which deliver financial savings for their valued customers, whilst helping protect the environment too, as said by Sam P., one of the directors of this company. This thing is also reflected in the logo of the
Scientists around the world have confirmed that the world's fossil fuel resources are being depleted at an alarmingly fast rate and could be gone within the next 50 to 80 years(“The End Of Fossil Fuels”). On the other hand solar energy is clean, unlimited, and most importantly it is becoming cheaper, making it equally or even less expensive than burning fossil fuels in the long term to generate electricity. The United States government should increase funding of the renewable energy program mainly focusing on solar energy since it is an environmentally friendly, unlimited, and cheap form of generating electricity. Furthermore, investing in solar would be an economically beneficial investment for both the individual and the rest of the country.