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Green Subsidies and the WTO

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  • Steve Charnovitz

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 different categories of subsidies. Next the paper provides an overview of the relevant WTO rules and caselaw, including the recent Canada -Renewable Energy case. The paper also makes specific recommendations for how WTO law can be improved, and discusses the existing literature discussing reform proposals. The study further finds that because of a lack of clarity in WTO rules, for some clean energy subsidies, a government will not know in advance whether the subsidy is WTO-legal.

Suggested Citation

  • Steve Charnovitz, 2014. "Green Subsidies and the WTO," RSCAS Working Papers 2014/93, European University Institute.
    • Handle: RePEc:rsc:rsceui:2014/93
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    References listed on IDEAS

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    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.
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    6. Gary Clyde Hufbauer & Steve Charnovitz & Jisun Kim, 2009. "Global Warming and the World Trading System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4280, April.
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    8. 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.
    9. 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.
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    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. Carolyn Fischer, 2017. "Environmental Protection for Sale: Strategic Green Industrial Policy and Climate Finance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(3), pages 553-575, March.
    3. 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.

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    Keywords

    international trade; international law; environmental protection; climate; subsidies; trade law;
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