Green Mercantilism: Threat to the Clean Energy Economy
In May 2012, the U.S. Department of Commerce preliminarily ruled in favor of a coalition of U.S. solar panel manufacturers’ petition against China for illegally exporting solar panels at below market rates. A coalition of U.S. wind turbine manufacturers filed a petition asking the Administration to take action against similar Chinese and Vietnamese wind subsidy policies. Both cases are just the latest complaints against competitor nations that use green mercantilist policies to gain unfair competitive advantage in the global clean energy industry. But the long-term harm of these policies greatly outweighs the short-term benefits. Not only do green mercantilist policies hurt clean energy producers in the United States, they also limit the incentive to invest in innovative, next-generation clean energy technologies, which hurts, not helps, the global community’s ability to reduce the emission of greenhouse gases.
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- Authors: Matthew Stepp and Robert Atkinson
- Released June 2012
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