Anti-subsidies kontra internalisering av externaliteter - en fallstudie i EU:s CVD på kinesiska solpaneler
(2014) NEKH01 20132Department of Economics
- Abstract
- This paper discusses the potential economic consequences of the countervailing duty imposed on solar panels imported from China by the EU. The paper is motivated by recent studies that indicate potential future costs from a world energy market that is characterized by technics that give rise to high relative levels of carbon dioxide. The intention is to discuss the potential effect that countervailing duties can have on the internalization of externalities in the form of consumption of solar panels.
Whether the countervailing duties represent a potential increase or decrease in the internalization of externalities comes down to the potential capabilities of European and Chinese producers. If European producers de facto are more... (More) - This paper discusses the potential economic consequences of the countervailing duty imposed on solar panels imported from China by the EU. The paper is motivated by recent studies that indicate potential future costs from a world energy market that is characterized by technics that give rise to high relative levels of carbon dioxide. The intention is to discuss the potential effect that countervailing duties can have on the internalization of externalities in the form of consumption of solar panels.
Whether the countervailing duties represent a potential increase or decrease in the internalization of externalities comes down to the potential capabilities of European and Chinese producers. If European producers de facto are more efficient than Chinese, the prices of solar panels may be decreased the furthest by protecting these producers from what the EU commission have declared to be unfair Chinese state aid. The countervailing duties would, in the case of European comparative advantage in the production of solar panels, give rise to global economic gains in the form of higher solar panel consumption and as a consequence lower carbon footprint. Unfortunately if the Chinese producers are in fact the most efficient the duties implemented will have the opposite effect due to the increased price of solar panel consumption in Europe.
Various trade theory related to production, externalities, and substitutions will be used to give a suggestion to which producer is the most efficient, and the likely consequences of European duties on global welfare. Hence the conclusion and analysis will be of a theoretical character. This is arguable to be preferred due to how recently the European decision came to implement solar panel duties. The recently of the event causes there to be very limited data available which is necessary to be able to use quantitative methods, which would otherwise at least be a good complement to the paper. This is also why future research should be concentrated at looking at the actual statistics regarding the outcome of recent events and try to build upon the conclusions expressed in this paper as well as criticize them. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4275923
- author
- Berglund, Otto LU and Bengtsson, Max LU
- supervisor
- organization
- course
- NEKH01 20132
- year
- 2014
- type
- M2 - Bachelor Degree
- subject
- keywords
- CVD, Subventioner, Externaliteter, EU, Kina
- language
- Swedish
- id
- 4275923
- date added to LUP
- 2014-02-11 13:12:45
- date last changed
- 2014-02-11 13:12:45
@misc{4275923,
abstract = {{This paper discusses the potential economic consequences of the countervailing duty imposed on solar panels imported from China by the EU. The paper is motivated by recent studies that indicate potential future costs from a world energy market that is characterized by technics that give rise to high relative levels of carbon dioxide. The intention is to discuss the potential effect that countervailing duties can have on the internalization of externalities in the form of consumption of solar panels.
Whether the countervailing duties represent a potential increase or decrease in the internalization of externalities comes down to the potential capabilities of European and Chinese producers. If European producers de facto are more efficient than Chinese, the prices of solar panels may be decreased the furthest by protecting these producers from what the EU commission have declared to be unfair Chinese state aid. The countervailing duties would, in the case of European comparative advantage in the production of solar panels, give rise to global economic gains in the form of higher solar panel consumption and as a consequence lower carbon footprint. Unfortunately if the Chinese producers are in fact the most efficient the duties implemented will have the opposite effect due to the increased price of solar panel consumption in Europe.
Various trade theory related to production, externalities, and substitutions will be used to give a suggestion to which producer is the most efficient, and the likely consequences of European duties on global welfare. Hence the conclusion and analysis will be of a theoretical character. This is arguable to be preferred due to how recently the European decision came to implement solar panel duties. The recently of the event causes there to be very limited data available which is necessary to be able to use quantitative methods, which would otherwise at least be a good complement to the paper. This is also why future research should be concentrated at looking at the actual statistics regarding the outcome of recent events and try to build upon the conclusions expressed in this paper as well as criticize them.}},
author = {{Berglund, Otto and Bengtsson, Max}},
language = {{swe}},
note = {{Student Paper}},
title = {{Anti-subsidies kontra internalisering av externaliteter - en fallstudie i EU:s CVD på kinesiska solpaneler}},
year = {{2014}},
}