POLI 441 Lecture Notes - Lecture 6: Landfill Gas, Market Failure, General Agreement On Tariffs And Trade
22 Oct 2018
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Used to target key political figures in trump admin. Mill: only time protecting duties are defensible are when imposed temporarily and in hopes of naturalizing a foreign industry, maturing infant industries that will eventually become int. competitive. Example of this: solar world, us solar energy, ontario"s power authority developed feed-in tariff: to encourage and promote greater use of renewable energy sources including on-shore wind, waterpower, renewable biomass, biogas, landfill gas and solar photovoltaic for electricity generating. Hamilton favoured subsidies over tariffs, as economists agree, subsidies are less distorting than tariffs. Opponents claimed such actions created vested interest, that subsidies were impossible for young nations, and that supporting education was a better alternative. Gov handouts are sticky, hard to remove once formed. In 1955 meade showed that all eligible infant industries could turn to capital markets, should be managed by market, gov should not be picking who stays afloat. In absence of efficient capital markets gov should remedy that inefficiency first.
