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

Patrice Bougette () and Christophe Charlier
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Patrice Bougette: GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, COMUE UCA - COMUE Université Côte d'Azur (2015-2019)

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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 reduces the effects of FIT programs and increases the dumping margin. These effects are reinforced by spillovers.

Date: 2018-03-22
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Published in Séminaire de recherche au CREM, CNRS et Université Rennes 1, Mar 2018, Rennes, France

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Related works:
Journal Article: Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute (2018)
Journal Article: 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 (2018)
Working Paper: Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute (2017)
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