Government Subsidies for Solar Panels
Government Subsidies for Solar Panels
Substitutes can help reduce the price of economic costs of some necessary utilities. Solar energy is a substitute and also an opportunity cost for the energy we use now, called fossil fuels. There are many benefits to switching from fossil fuels to solar energy. Solar energy can help lower the cost of the energy we use now by burning fossil fuels, changing the supply and demand of the product. Also, it can help the pollution that is causing further health and economic problems.
Since there are many benefits to funding research about solar energy and knowing the benefits the solar panels actually have, I believe government funding to keep prices low on this product is necessary. Subsidies given to producers of solar panels would mean money given to businesses would be used to keep prices low, and all the benefits currently about solar panels would still be in play. Also, if subsidies are given to businesses, there will be a lower chance of a monopoly because the prices will remain at a lower cost. Since the government has a regulation on the price of the product once they would give the business a subsidy, there will continue to be competition between industries. Knowing all this would have a positive impact on the economic outlook of the situation. (WORKS CITED FOR WESTERNFREEPRESS)
Solar energy is considered a “green” source of energy. Green sources of energy became a big role in the economy around the 1970’s when there was a period of time when there was a shortage of fossil fuels. Many subsidies were funded from the government for further research on green energy at that time, and specifically solar energy. People were desperate to find substitutes for energy since the price of oil was basically doubling overnight. After all the funding, by the 1990’s, solar energy costs had dropped as predicted and it was looking very promising for more funding and the beginning of solar energy being introduced instead of the scarce
Substitutes can help reduce the price of economic costs of some necessary utilities. Solar energy is a substitute and also an opportunity cost for the energy we use now, called fossil fuels. There are many benefits to switching from fossil fuels to solar energy. Solar energy can help lower the cost of the energy we use now by burning fossil fuels, changing the supply and demand of the product. Also, it can help the pollution that is causing further health and economic problems.
Since there are many benefits to funding research about solar energy and knowing the benefits the solar panels actually have, I believe government funding to keep prices low on this product is necessary. Subsidies given to producers of solar panels would mean money given to businesses would be used to keep prices low, and all the benefits currently about solar panels would still be in play. Also, if subsidies are given to businesses, there will be a lower chance of a monopoly because the prices will remain at a lower cost. Since the government has a regulation on the price of the product once they would give the business a subsidy, there will continue to be competition between industries. Knowing all this would have a positive impact on the economic outlook of the situation. (WORKS CITED FOR WESTERNFREEPRESS)
Solar energy is considered a “green” source of energy. Green sources of energy became a big role in the economy around the 1970’s when there was a period of time when there was a shortage of fossil fuels. Many subsidies were funded from the government for further research on green energy at that time, and specifically solar energy. People were desperate to find substitutes for energy since the price of oil was basically doubling overnight. After all the funding, by the 1990’s, solar energy costs had dropped as predicted and it was looking very promising for more funding and the beginning of solar energy being introduced instead of the scarce
Cited: FOR WESTERNFREEPRESS) As stated, I believe subsidies would cause a positive impact for the business of producing the solar panels. Knowing there is an alternative source of energy rather than fossil fuels can be positive on the solar panel industry. Benefits such as keeping competition, making sure of no monopolies, and having lower long term costs are all reasons why subsidies should be invested into the solar panel business. Economically, I believe the subsidies are necessary because of the great impact it would have short term, and long term, like supply and demand both would have a direct relationship. I firmly believe government subsidies would positively impact the solar panel business, making the businesses more efficient and satisfying consumers.