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Conflicts of the SCM Agreement with LDCs Interests over Renewable Energy Incentives

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  • Zaker Ahmad

Abstract

This article argues that climate change effects have sharpened the least developed countries’ (LDCs) need to move towards a green economy. As respective markets tend to grow, the LDCs would benefit if the production of and research in renewable energy (RE) especially wind and solar energy equipments and technologies are subsidized globally. Despite the existence of the policy room in other related international regulatory framework, the Subsidies Agreement of the World Trade Organization makes incentivizing RE industries significantly difficult, if not impossible. It has been recommended that law reform, by way of incorporating special carve-outs in the Subsidies and Countervailing Measures Agreement, is the path that would assist LDCs in their smoother transition to a green economy.

Suggested Citation

  • Zaker Ahmad, 2015. "Conflicts of the SCM Agreement with LDCs Interests over Renewable Energy Incentives," Foreign Trade Review, , vol. 50(2), pages 118-134, May.
    • Handle: RePEc:sae:fortra:v:50:y:2015:i:2:p:118-134
    DOI: 10.1177/0015732515572059
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    References listed on IDEAS

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    1. Low, Patrick & Marceau, Gabrielle & Reinaud, Julia, 2011. "The interface between the trade and climate change regimes: Scoping the issues," WTO Staff Working Papers ERSD-2011-01, World Trade Organization (WTO), Economic Research and Statistics Division.
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    More about this item

    Keywords

    LDC; green energy; energy subsidies; SCM; WTO;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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