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On the influence of the European trade barrier on the chinese pv industry: Is the solution to the solar-dispute “successful”?

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  • McCarthy, Killian J.

Abstract

In July 2013 the European Union (EU) imposed restrictions on Chinese solar photovoltaic (PV) manufacturers, looking to exporting to the EU. In this paper, we consider the impact of this trade barrier, using a sample of 454 stock-listed PV producing firms. We find that the trade barrier erased US$ 8,19 million off the value of the average European PV manufacturers and US$ 247.03 million off the value of the average Chinese PV manufacturers. We also find that while the trade barrier reduced the willingness of the industry to reorganise, it stimulates Chinese manufacturers to reorganise both their domestic and their international operations. The latter, we warn, is likely an attempt by Chinese manufacturers to ‘tariff jump’. We conclude, therefore, that the trade barrier was both inefficient, in that it both hurt the companies it aimed to protect, and ineffective, as those it sought to punish may have circumvented it.

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  • McCarthy, Killian J., 2016. "On the influence of the European trade barrier on the chinese pv industry: Is the solution to the solar-dispute “successful”?," Energy Policy, Elsevier, vol. 99(C), pages 154-157.
    • Handle: RePEc:eee:enepol:v:99:y:2016:i:c:p:154-157
    DOI: 10.1016/j.enpol.2016.09.055
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    References listed on IDEAS

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    Cited by:

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    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).
    6. Zhu, Xiangdong & He, Canfei & Gu, Zhutong, 2021. "Benefit from local or destination? The export expansion of Chinese photovoltaic industry under trade protection," Energy Economics, Elsevier, vol. 104(C).
    7. Andres, Pia, 2022. "Was the trade war justified? Solar PV innovation in Europe and the impact of the ‘China shock’," LSE Research Online Documents on Economics 116945, London School of Economics and Political Science, LSE Library.
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    11. Wu, Xianhua & Guo, Ji & Song, Shunfeng, 2023. "Influence of international trade disputes on the world industrial economic system based on inoperability input-output model," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 787-803.
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