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

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  • Patrice Bougette and Christophe Charlier

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 and Christophe Charlier, 2018. "Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute," The Energy Journal, International Association for Energy Economics, vol. 0(Number 6).
    • Handle: RePEc:aen:journl:ej39-6-charlier
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    Cited by:

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    2. Patrice Bougette & Christophe Charlier, 2019. "Subsidies and Countervailing Measures in the EU Biofuel Industry: A Welfare Analysis," Post-Print halshs-02306022, HAL.
    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. 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).

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