Strategic Avoidance and Welfare Impacts of Solar Panel Tariffs (joint with Bryan Bollinger, Kenneth Gillingham, Drew Vollmer, and Daniel Xu)
Todd Gerarden, Cornell University
This study examines the effects of tariffs imposed by the United States on imported solar panels. We first provide definitive evidence that tariff-exposed firms shifted production to locations that did not face tariffs, and that domestic prices increased relative to other markets. We then develop a structural model to analyze welfare and employment effects. We find that the tariffs led to modest gains for manufacturers with domestic operations, but larger losses in domestic consumer surplus and environmental benefits. Furthermore, the tariffs reduced domestic solar industry employment and wages on net. By contrast, subsidizing solar panel manufacturing could increase domestic production, employment, and welfare.
| Building: | Lorch Hall |
|---|---|
| Website: | |
| Event Type: | Workshop / Seminar |
| Tags: | Economics, Industrial Organization, seminar |
| Source: | Happening @ Michigan from Department of Economics, Applied Microeconomics/Industrial Organization, Department of Economics Seminars |
