Renewable Energy, Subsidies, and the WTO: Where Has the ‘Green’ Gone?

Renewable Energy, Subsidies, and the WTO: Where Has the ‘Green’ Gone? / Patrice Bougette & Christophe Charlier. GREDEG, 1/07/2014, 30 p. (GREDEG Working Paper No. 2014-20)

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2468761

Authors’s abstract:

Faced with the energy transition imperative, governments have to decide about public policy to promote renewable electrical energy production and to protect domestic power generation equipment industries. For example, the Canada – Renewable energy dispute is over Feed-in tariff (FIT) programs in Ontario that have a local content requirement (LCR). The EU and Japan claimed that FIT programs constitute subsidies that go against the SCM Agreement, and that the LCR is incompatible with the non-discrimination principle of the World Trade Organization (WTO). This paper investigates this issue using an international quality differentiated duopoly model in which power generation equipment producers compete on price. FIT programs including those with a LCR are compared for their impacts on trade, profits, amount of renewable electricity produced, and welfare. When ‘quantities’ are taken into account, the results confirm discrimination. However, introducing a difference in the quality of the power generation equipment produced on both sides of the border provides more mitigated results. Finally, the results enable discussion of the question of whether environmental protection can be put forward as a reason for subsidizing renewable energy producers in light of the SCM Agreement.



Citer ce billet
Danièle Revel (2014, 22 août). Renewable Energy, Subsidies, and the WTO: Where Has the ‘Green’ Gone? Veille énergie climat. Consulté le 18 juin 2024, à l’adresse https://doi.org/10.58079/ob6w

Vous aimerez aussi...

Rechercher dans OpenEdition Search

Vous allez être redirigé vers OpenEdition Search