Abstract:
Shaping the Future of Solar Power: Climate Change, Industrial Policy and Free Trade (Part B), is the second of a two part case but may also be taught on its own. In May 2013, European Union Trade Commissioner, Karel De Gucht faced a career-defining choice. Soon, he would have to announce a decision on the E.U.'s biggest anti-dumping case, initiated by a group of European solar panel makers against Chinese manufacturers. De Gucht was aware that imposing tariffs on Chinese solar companies could set off a wider trade war between two of the world's largest economies.
Part B of the case highlights the tensions between the E.U. and China on sale of solar panels, echoing the politically charged solar battles between the U.S. and China in 2012. The negotiated solar trade settlement between the E.U. and China offers insights into the political realities behind industrial policies, action on climate change, and free trade.
Learning Objective:
By analyzing the solar trade wars between the E.U. and China, students examine how global supply chains are redefining trade and industrial policies.
