Template-Type: ReDIF-Article 1.0
Author-Name:  Patrice Bougette and Christophe Charlier
Title:  Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute
Classification-JEL: F0
Volume:  Volume 39
Issue:  Number 6
Year:  2018
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.
Handle: RePEc:aen:journl:ej39-6-Charlier
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=3257
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