THE ECONOMIC EFFECTS OF ANTI-DUMPING AND ANTI-SUBSIDY POLICIES AMONG CHINA, THE U.S. AND THE EU: THE PHOTOVOLTAIC INDUSTRY

Abstract

Since the end of 2011, the U.S., the European Union (EU) and China have been searching for a trade remedy regarding each other’s photovoltaic (PV) industry. Based on the perspective of the value chain of Global Solar Energy PV industry, this paper examines related factors including the tax rate imposed on the PV industry, and uses the global simulation model (GSIM) to predict the trade impact and welfare effects generated from the “double-anti” policy (anti-dumping laws with countervailing duties). The results of the research showed that China has not yet formed a complete value chain of the PV industry that is internationally competitive. The economic effect of the “double-anti” policy on China as a result of the EU is more pronounced than that with the U.S. The “double-anti” policy will have a negative impact on China’s low carbon economy development. The authors conclude that the development of polycrystalline silicon in China needs to be supported by forcible policy measures and targeted measures are proposed.