Why do the United States and the European Union governments apply tariffs to solar panel imports, even though solar panels generate positive consumption externalities?

Question

Quizplus · Accepted Answer

The rationale behind applying tariffs to solar panel imports by the United States and the European Union is to encourage domestic production, which is believed to generate positive production externalities. These positive production externalities from domestic manufacturing are considered to outweigh the positive consumption externalities of imported solar panels. This approach supports local industries, job creation, and technological advancements within the domestic economy.

Why Do the United States and the European Union Governments