Study Of Clean Energy Subsidies In WTO Framework

As the consumption of energy has consistently grown, the fossil energy exerts an adverse compact on global environment and climate. Many governments are now casting their eyes on the clean energy industry, trying to support this new-born industry. At the initial level, the cost of research and production for clean energy is relatively high. As the consequence, many governments are very lenient at granting subsidies to clean energy industries. However, such fiscal subsidies, granted by the governments to a specific industry, are very likely to be regarded as subsidy which violates the world trade organization (WTO) rules or sued by other partner countries taking countervailing measures. At present, the subsidies has promoted the development of the clean energy industry to a certain degree, but there are more problems can lead to the development of clean energy industry deformity and cause more international trade friction.This paper reviews Chinese subsidies for clean energy, then studies the impact of the clean energy industry subsidies:(1) Based on WTO existing statute and past cases, the paper first make a thorough inquiry of Chinese clean energy subsidies and taxation of the WTO rationality. We will analyzed tax incentives, subsidies and price subsidy of clean energy industry respectively policy were analyzed.(2)Learning PSE measure the size of fossil energy subsidies and taxation respectively, to measure the size of clean energy industry’s subsidies and taxation scale,so as clean energy equipment and parts industry’s export tax rebate scale.(3)We build clean energy CGE models, simulate:①he influence of the macroeconomic, industrial structure and carbon emissions impact caused by changes in clean energy industry’s subsidies and taxation scale;②the influence of international trade caused by the change of clean energy production equipment and spare parts industry’s export tax rebate policy.Through theoretical and empirical research, we evaluate the current fiscal and tax subsidies for clean energy systems, and make relevant policy recommendations.(1) China’s current clean energy subsidies and taxation policies not only promote the development of China’s clean energy industry, but also has played a positive role in the development of China’s macro-economic, industrial restructuring and environmental protection.(2) Clean energy subsidies and taxation policies promote China’s transition to a low-power industrial structure, greatly reduced the amount of carbon emissions. It’s an important way to achieve our goal to reduce emissions by40%-45% established in2020. As a high-tech energy saving of clean energy industry in developing countries, it’s a relatively weighty defense to WTO momentum.(3) Also clean taxation subsidies policy promote exports of clean energy equipment to some extent. The international treats the increase of exports caused by subsidies as Countervailing Measures and the excuse of the WTO’s lawsuit. Therefore we should control the export tax rebate subsidies in a certain size, in order to guide the healthy development of clean energy industry and effectively avoid international trade disputes.