much of recent production cost reductions are due to Chinese manufacturing which trade significant environmental damage for increased productivity.

Do you have citations for how Chinese solar panel production causes undo environmental damage?

My impression is that China subsidized their solar panel industry and gave that industry grants. Basically they did "Solyndra" a couple dozen times over and then found some winners. The US instead took the Solyndra example and divested. I don't think lax environmental laws was the difference, but instead government investment.

This is called friction.

It is part of the Supply & Demand model. Governments and other factors add friction which impact the elasticity of supply and demand curve.

Modern Capitalist societies are not pure, governments can drive friction through regulations, fees, taxes, codes, and a million other factors.

This was a great podcast and well worth a listen. It answers most of the questions I see folks asking here.