retroworks writes "Two stories in Digitimes make a puzzle of economic policy. USA and European tax incentives and stimulus increase steady demand for solar panels. Chinese government subidizes production of solar panels to meet this growing demand. USA and EU complain, place tariff on Chinese solar panels. http://www.digitimes.com/news/a20120321PD219.html Do allegations that China has used government funding to subsidize the production trump our desire for cheaper solar power? Subsidizing demand led to subsidized production. In other words, one market interference (subsidized demand for solar) leads to its counterpoint, government tariff and taxation of the same product. Is this different than governments role in nuclear research was 50 years ago?"
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