Re:A palm oil alternative could help save rainforests
by Scoundreller on Tuesday December 15, 2020 @04:26PM
(#25435470)
If the US gives 50% rebates on panels for US installation, the manufacturers of the limited good (panels) will charge more money because they can.
If you’re Madagascar, you’re SOL.
You might argue that subsidies create an industry of overproduction that’ll eventually crash the market, but that’s definitely not the initial state.
Just as if you’re a gas station and the government gives you a subsidy for every litre you sell, you’ll use some of that subsidy to pay more and sell for less in your local market and still have higher margins than your competitor.
If you’re Madagascar, you’re SOL.
You might argue that subsidies create an industry of overproduction that’ll eventually crash the market, but that’s definitely not the initial state.
Just as if you’re a gas station and the government gives you a subsidy for every litre you sell, you’ll use some of that subsidy to pay more and sell for less in your local market and still have higher margins than your competitor.