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Reflection Paper 3

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Daniel Atilla Helderman
October 16, 2015 reflection paper 3: Shaping the future of solar power (Solyndra)

After reading the case on “Shaping the future of solar power: climate change, industrial policy and free trade” I gained much clearer insight to the history and working of the solar energy industry. From personal experience, I have seen the recent increased use renewable energy, particularly wind and solar energy. Internationally, in Europe wind and solar energy as source of energy is not new revelation too me, many European countries, such as the Netherlands, my birthplace, are not new in utilizing wind and solar energies. What this case brought me to really learn was the involvement and the relationship of the U.S and China government in the solar energy industry. It came as no surprise to me that the U.S government was subsidizing the solar energy, however what came to light to me was the level of international competitiveness and political gridlock between China and the U.S in the solar energy industry. It was interesting to touch on the issue if governments should intervene in the market place. It became clear, that it was tough issue for the government to tackle, with one side of the government arguing that government intervention in the solar energy industry is hurtful and detrimental to business, highlighting the case of Solyndra bankruptcy. The other side, Obama administration, argues that the U.S needs to continue to subsidize and give tax break to solar energy companies to make them competitive in the international markets. The confusing issue, in solving this case is the involvement of international governments subsidiaries to competing solar energy companies in the market. In particular, China’s high subsidiary and loans to the renewable energy industry. Due to the world’s ever-globalized economy, the actions of other governments in

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