Abstract
The infant industry argument has persisted through most of industrial era history in one form or the other. While in the mercantilist era, government intervention through subsidies, tariffs, quotas and other fiscal measures, and through non-tariff barriers to imports, has been justified by the face-off between the “developed” and the “developing” worlds, the virtual collapse of national borders and the consequent vertical-disintegration-of-production-processes has spawned new theories. The lines of reasoning have shifted to “mature industries versus emerging technology” or between the so called entrenched “old economy” sectors against the sunrise “new economy” sectors.
Sir Humphrey: “Bernard, subsidy is for art…for culture. It is not to be given to what the people want, it is for what the people don’t want but ought to have.”
-Yes Minister Television series, “The Middle-Class Rip-Off”, 23 December 1982
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Sunderasan, S. (2011). Infant Industry and Incentive Structures. In: Rational Exuberance for Renewable Energy. Green Energy and Technology. Springer, London. https://doi.org/10.1007/978-0-85729-212-4_1
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DOI: https://doi.org/10.1007/978-0-85729-212-4_1
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