This paper provides a welfare comparison of a tariff with a combination of a production subsidy to, and a commodity tax … combination of the production subsidy and the commodity tax and show it to be superior to the tariff from the welfare viewpoint …

interventions are import tariffs and production subsidies, both of which are, in general, costly. Tariffs on foreign producers … years, has relied on both import tariffs and production subsidies to support the domestic solar module manufacturing … costs associated with production subsidies and much larger costs associated with import tariffs. Specifically, in our main …