IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/7060.html
   My bibliography  Save this paper

Green subsidies and the WTO

Author

Listed:
  • Charnovitz, Steve

Abstract

This paper provides a detailed explanation how the law of the World Trade Organization regulates environmental subsidies with a focus on renewable energy subsidies. The paper begins by discussing the economic justifications for such subsidies and the criticisms of them and then gives examples of categories of subsidies. The paper provides an overview of the relevant World Trade Organization rules and case law, including the recent Canada-Renewable Energy case. The paper also makes specific recommendations for how World Trade Organization law can be improved and discusses the literature on reform proposals. The study finds that because of a lack of clarity in World Trade Organizaion rules, for some clean energy subsidies, a government will not know in advance whether the subsidy is World Trade Organization-legal.

Suggested Citation

  • Charnovitz, Steve, 2014. "Green subsidies and the WTO," Policy Research Working Paper Series 7060, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7060
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/10/14/000158349_20141014095048/Rendered/PDF/WPS7060.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Green, Andrew, 2006. "Trade rules and climate change subsidies," World Trade Review, Cambridge University Press, vol. 5(3), pages 377-414, November.
    2. Goode,Walter, 2007. "Dictionary of Trade Policy Terms," Cambridge Books, Cambridge University Press, number 9780521885065, August.
    3. Paolo D. Farah & Elena Cima, 2013. "Energy Trade and the WTO: Implications for Renewable Energy and the OPEC Cartel," Journal of International Economic Law, Oxford University Press, vol. 16(3), pages 707-740, September.
    4. Matsushita, Mitsuo & Schoenbaum, Thomas J. & Mavroidis, Petros C., 2006. "The World Trade Organization: Law, Practice, and Policy," OUP Catalogue, Oxford University Press, edition 2, number 9780199208005.
    5. Aaditya Mattoo & Arvind Subramanian, 2013. "Four Changes to Trade Rules to Facilitate Climate Change Action," Policy Papers 21, Center for Global Development.
    6. Bradly J. Condon, 2009. "Climate Change and Unresolved Issues in WTO Law," Journal of International Economic Law, Oxford University Press, vol. 12(4), pages 895-926, December.
    7. Heymi Bahar & Jagoda Egeland & Ronald Steenblik, 2013. "Domestic Incentive Measures for Renewable Energy With Possible Trade Implications," OECD Trade and Environment Working Papers 2013/1, OECD Publishing.
    8. Annamaria La Chimia & Sue Arrowsmith, 2009. "Addressing Tied Aid: Towards a More Development-Oriented WTO?," Journal of International Economic Law, Oxford University Press, vol. 12(3), pages 707-747, September.
    9. Gary Clyde Hufbauer & Jeffrey J. Schott & Cathleen Cimino & Martin Vieiro & Erika Wada, 2013. "Local Content Requirements: A Global Problem," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6802, October.
    10. Stiglitz Joseph, 2006. "A New Agenda for Global Warming," The Economists' Voice, De Gruyter, vol. 3(7), pages 1-4, July.
    11. Luca Rubini, 2012. "Ain't Wastin' Time No More: Subsidies for Renewable Energy, The SCM Agreement, Policy Space, and Law Reform," Journal of International Economic Law, Oxford University Press, vol. 15(2), pages 525-579, June.
    12. Matsushita, Mitsuo & Schoenbaum, Thomas J. & Mavroidis, Petros C., 2006. "The World Trade Organization: Law, Practice, and Policy," OUP Catalogue, Oxford University Press, edition 2, number 9780199284566.
    13. Goode,Walter, 2007. "Dictionary of Trade Policy Terms," Cambridge Books, Cambridge University Press, number 9780521712064, August.
    14. World Bank, 2012. "Inclusive Green Growth : The Pathway to Sustainable Development," World Bank Publications - Books, The World Bank Group, number 6058, December.
    15. Peter Carroll & Aynsley Kellow, 2011. "The OECD," Books, Edward Elgar Publishing, number 4266.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fischer, Carolyn & Greaker, Mads & Rosendahl, Knut Einar, 2017. "Robust technology policy against emission leakage: The case of upstream subsidies," Journal of Environmental Economics and Management, Elsevier, vol. 84(C), pages 44-61.
    2. Vilija Aleknevičien&# & Asta Bendoraityt&#, 2023. "Role of Green Finance in Greening the Economy: Conceptual Approach," Central European Business Review, Prague University of Economics and Business, vol. 2023(2), pages 105-130.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Steve Charnovitz, 2014. "Green Subsidies and the WTO," RSCAS Working Papers 2014/93, European University Institute.
    2. Julián Tole Martínez, 2019. "Colombia entre los TLC y la OMC: ¿liberación o administración del comercio internacional?," Books, Universidad Externado de Colombia, Facultad de Derecho, number 1139, October.
    3. Arvind Subramanian & Martin Kessler, 2013. "The Hyperglobalization of Trade and Its Future," Working Paper Series WP13-6, Peterson Institute for International Economics.
    4. Julián Tole Martínez, 2019. "Colombia entre los TLC y la OMC: ¿liberación o administración del comercio internacional?," Books, Universidad Externado de Colombia, Facultad de Derecho, number 1130, October.
    5. Matthew Littleton, 2009. "The TRIPS Agreement and transfer of climate‐change‐related technologies to developing countries," Natural Resources Forum, Blackwell Publishing, vol. 33(3), pages 233-244, August.
    6. Stephen, Matthew D. & Parízek, Michal, 2019. "New Powers and the Distribution of Preferences in Global Trade Governance: From Deadlock and Drift to Fragmentation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(6), pages 735-758.
    7. Timo Gerres & Manuel Haussner & Karsten Neuhoff & Alice Pirlot, 2019. "Can Governments Ban Materials with Large Carbon Footprint? Legal and Administrative Assessment of Product Carbon Requirements," Discussion Papers of DIW Berlin 1834, DIW Berlin, German Institute for Economic Research.
    8. Lee Yong-Shik, 2009. "Theoretical Basis and Regulatory Framework for Microtrade: Combining Volunteerism with International Trade towards Poverty Elimination," The Law and Development Review, De Gruyter, vol. 2(1), pages 367-399, December.
    9. Ornelas, Emanuel & Puccio, Laura, 2020. "Reopening Pandora's Box in Search of a WTO-Compatible Industrial Policy? The Brazil–Taxation Dispute," World Trade Review, Cambridge University Press, vol. 19(2), pages 249-266, April.
    10. Stephan Wittig, 2021. "Transatlantic Trade Dispute: Solution for Airbus-Boeing Under Biden?," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(1), pages 23-31, January.
    11. Scheifele, F. & Bräuning, M. & Probst, B., 2022. "The impact of local content requirements on the development of export competitiveness in solar and wind technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    12. Dong-Hoon Kim & Bong-Chul Kim, 2008. "Safeguard measures in RTAs and Proposals for the KCJ FTA," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 11(1), pages 53-94, March.
    13. Éric Millard, 2016. "Teoría General Del Derecho," Books, Universidad Externado de Colombia, Facultad de Derecho, number 833, October.
    14. Ceva, Emanuela & Fracasso, Andrea, 2010. "Seeking mutual understanding: a discourse-theoretical analysis of the WTO Dispute Settlement System," World Trade Review, Cambridge University Press, vol. 9(3), pages 457-485, July.
    15. Chang Hwan Choi & Jae-Woo Kim, 2014. "Determinants for Macroeconomic Factors of Antidumping: A Comparative Analysis of India and China," The International Trade Journal, Taylor & Francis Journals, vol. 28(3), pages 229-245, March.
    16. Spagnuolo, Francesca, 2011. "Diversity and pluralism in earth system governance: Contemplating the role for global administrative law," Ecological Economics, Elsevier, vol. 70(11), pages 1875-1881, September.
    17. Cottier, Thomas, 2011. "Confidence-Building for Global Challenges: The Experience of International Economic Law and Relations," Papers 206, World Trade Institute.
    18. Simo Regis Y., 2013. "Integrating African Markets into the Global Exchange of Services: A Central African Perspective," The Law and Development Review, De Gruyter, vol. 6(2), pages 255-297, September.
    19. Fischer, Carolyn & Fox, Alan K., 2012. "Comparing policies to combat emissions leakage: Border carbon adjustments versus rebates," Journal of Environmental Economics and Management, Elsevier, vol. 64(2), pages 199-216.
    20. Ornelas, Emanuel & Puccio, Laura, 2019. "Reopening Pandora’s Box in Search of a WTO-Compatible Industrial Policy? The Brazil -Taxation Dispute," CEPR Discussion Papers 14042, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Environmental Economics&Policies; Economic Theory&Research; Taxation&Subsidies; Emerging Markets; Trade Law;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:7060. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.