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

Patrice Bougette () and Christophe Charlier ()

No 2017-17, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis

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.

Keywords: Antidumping; FIT; Solar Panels; Renewable Energy; Trade disputes; EU; China (search for similar items in EconPapers)
JEL-codes: F18 L52 Q42 Q48 Q56 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna, nep-ene, nep-env, nep-int and nep-reg
Date: 2017-05, Revised 2018-11
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Downloads: (external link)
http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2017-17.pdf Revised version, 2018-11 (application/pdf)

Related works:
Working Paper: Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute (2018)
Working Paper: Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute (2018)
Working Paper: Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2017-17

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