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Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute

Author

Listed:
  • Patrice Bougette

    (Université Côte d'Azur
    GREDEG CNRS)

  • Christophe Charlier

    (Université Côte d'Azur
    GREDEG CNRS)

Abstract

The paper analyzes the interactions between trade and renewable energy policies based on the EU-China solar panel dispute which is the most significant antidumping (AD) complaint in Europe. We build a price competition duopoly model with differentiated products and intra-industry trade in photovoltaic (PV) equipment. We show that an optimal antidumping duty always increases with the feed-in tariff (FIT) program set in the home country. An appropriate antidumping duty - nullifying the dumping margin - decreases with the FIT program. We show that optimal FIT increases with the AD duty. Therefore, trade and renewable energy optimal policies may complement one another. Lastly, we introduce R&D activities in the PV sector, and international spillovers. We show that R&D makes the optimal FIT lower and increases the dumping margin. These effects are reinforced by technological spillovers.

Suggested Citation

  • Patrice Bougette & Christophe Charlier, 2017. "Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute," GREDEG Working Papers 2017-17, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Nov 2018.
    • Handle: RePEc:gre:wpaper:2017-17
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    References listed on IDEAS

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    Cited by:

    1. Patrice Bougette & Christophe Charlier, 2019. "Subsidies and Countervailing Measures in the EU Biofuel Industry: A Welfare Analysis," Post-Print halshs-02306022, HAL.
    2. Wang, Chao & Huang, Xia & Hu, Xiaoqian & Zhao, Longfeng & Liu, Chao & Ghadimi, Pezhman, 2021. "Trade characteristics, competition patterns and COVID-19 related shock propagation in the global solar photovoltaic cell trade," Applied Energy, Elsevier, vol. 290(C).
    3. Xufang Zhang & Changyou Sun & Jason Gordon & Ian A. Munn, 2020. "Determinants of Temporary Trade Barriers in Global Forest Products Industry," Sustainability, MDPI, vol. 12(9), pages 1-13, May.
    4. Zhang, Shuwei & Bauer, Nico & Yin, Guangzhi & Xie, Xi, 2020. "Technology learning and diffusion at the global and local scales: A modeling exercise in the REMIND model," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    5. Guan, Qing & An, Haizhong & Wang, Kaiming & Duan, Yueran & Zhang, Yixiong, 2020. "Functional trade patterns and their contributions to international photovoltaic trade revealed by network motifs," Energy, Elsevier, vol. 195(C).

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    More about this item

    Keywords

    Antidumping; FIT; Solar Panels; Renewable Energy; Trade disputes; EU; China;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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