Green Subsidies and the WTO

This paper provides a detailed explanation how the law of the World Trade Organization regulates environmental subsidies with a focus on renewable energy subsidies. The paper begins by discussing the economic justifications for such subsidies and the criticisms of them and then gives examples of categories of subsidies. The paper provides an overview of the relevant World Trade Organization rules and case law, including the recent Canada-Renewable Energy case. The paper also makes specific recommendations for how World Trade Organization law can be improved and discusses the literature on reform proposals. The study finds that because of a lack of clarity in World Trade Organizaion rules, for some clean energy subsidies, a government will not know in advance whether the subsidy is World Trade Organization-legal.

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Bibliographic Details
Main Author: Charnovitz, Steve
Format: Policy Research Working Paper biblioteca
Language:English
en_US
Published: World Bank Group, Washington, DC 2014-10
Subjects:ABATEMENT, ADVERSE EFFECTS, AGREEMENT ON AGRICULTURE, AGREEMENT ON SUBSIDIES, AGREEMENT ON TRADE-RELATED ASPECTS, AGRICULTURAL SUBSIDIES, AGRICULTURE, APPELLATE BODY, APPELLATE BODY REPORT, BANK LENDING, BENCHMARK, BUDGET CONSTRAINTS, CAPITAL MARKET, CARBON, CARBON EMISSIONS, CARBON TAX, CASE LAW, CLIMATE CHANGE, COAL, COMMODITY, COMMUNICATIONS INFRASTRUCTURE, COMPARATIVE ADVANTAGE, COMPETITIVENESS, COMPLEX TASK, CONFLICT OF LAW, CONSUMERS, COST SAVINGS, COUNTERVAILING DUTIES, COUNTERVAILING MEASURES, COUNTRY MARKET, CURRENCY, DEBT, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT POLICY, DIMINISHING RETURNS, DIRECT TRANSFER, DISADVANTAGED REGIONS, DISGUISED RESTRICTION, DISPUTE SETTLEMENT, DISPUTE SETTLEMENT SYSTEM, DOMESTIC INDUSTRIES, DOMESTIC MARKET, DUMPING, ECONOMIC EFFECTS, ECONOMIC GROWTH, ECONOMIC INSTRUMENTS, ECONOMIC JUSTIFICATION, ECONOMIC LAW, ECONOMIC WELFARE, ECONOMICS, ECONOMISTS, EMISSIONS, ENERGY CONSUMPTION, ENERGY EFFICIENCY, ENERGY SUBSIDIES, ENVIRONMENTAL, ENVIRONMENTAL BENEFITS, ENVIRONMENTAL EXTERNALITIES, ENVIRONMENTAL GOODS, ENVIRONMENTAL LAW, ENVIRONMENTAL POLICIES, ENVIRONMENTAL POLICY, ENVIRONMENTAL PROBLEMS, ENVIRONMENTAL REGULATIONS, ENVIRONMENTAL RESOURCES, ENVIRONMENTAL SUBSIDIES, ENVIRONMENTAL SUBSIDY, ENVIRONMENTAL TREATIES, ENVIRONMENTS, EQUITY CAPITAL, EXPENDITURES, EXPORT CREDIT, EXPORT CREDITS, EXPORT MARKETS, EXPORT SUBSIDY, EXPORTS, EXTERNALITIES, FINANCIAL BENEFIT, FINANCIAL CONTRIBUTION, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL RESOURCES, FISCAL POLICIES, FOREIGN COMPANIES, FOREIGN COUNTRIES, FOREIGN EXPORT SUBSIDIES, FOREIGN GOVERNMENT, FOREIGN INVESTMENT, FOSSIL FUELS, FREE RIDERS, GENERAL AGREEMENT ON TRADE IN SERVICES, GLOBAL ECONOMY, GLOBAL WELFARE, GOVERNMENT GRANTS, GOVERNMENT GUARANTEE, GOVERNMENT INTERVENTION, GOVERNMENT OWNERSHIP, GOVERNMENT REGULATION, GOVERNMENT SUBSIDIES, GOVERNMENT SUBSIDY, GREEN INVESTMENTS, GROWTH THEORY, INCOME, INCOMES, INCREASING RETURNS, INFORMATION ASYMMETRIES, INTANGIBLES, INTELLECTUAL PROPERTY, INTELLECTUAL PROPERTY RIGHTS, INTEREST RATES, INTERMEDIATE INPUTS, INTERNALIZATION OF ENVIRONMENTAL COSTS, INTERNATIONAL AGENCIES, INTERNATIONAL BANK, INTERNATIONAL CONSENSUS, INTERNATIONAL LAW, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, INTERNATIONAL TRADE LAW, INVESTMENT DECISION, JOB CREATION, JURISDICTION, LEGAL CONSTRAINTS, MANAGED TRADE, MARGINAL BENEFITS, MARGINAL COSTS, MARKET ACCESS, MARKET CONDITIONS, MARKET DISTORTIONS, MARKET EXPECTATIONS, MARKET FAILURE, MARKET FAILURES, MARKET PRICES, MARKET SHARE, MATERIAL INJURY, NATIONAL AUTHORITIES, NEGATIVE EXTERNALITIES, NEGATIVE EXTERNALITY, NON-ACTIONABLE SUBSIDIES, NON-TARIFF BARRIERS, OUTPUT, OVERHEAD COSTS, PANEL REPORT, PATENTS, POLICY MAKERS, POLICY RESEARCH, POLITICAL ECONOMY, POLLUTER, POLLUTERS, POLLUTION, POLLUTION CONTROL, PORTFOLIO, POSITIVE EXTERNALITIES, POSITIVE EXTERNALITY, PRIVATE INVESTMENTS, PRIVATE INVESTORS, PRIVATIZATION, PRIVATIZATIONS, PRODUCERS, PRODUCTION PROCESS, PRODUCTION PROCESSES, PROPERTY RIGHTS, PUBLIC GOOD, PUBLIC GOODS, PUBLIC-PRIVATE PARTNERSHIPS, RATE OF RETURN, REGULATORY REQUIREMENTS, REMEDIES, RENEWABLE ENERGIES, RENEWABLE ENERGY, RESOURCE MANAGEMENT, SECURITY EXCEPTIONS, SETTLEMENT SYSTEM, SOCIAL COSTS, SUBSIDIZATION, SUBSIDIZED IMPORTS, SUSTAINABLE DEVELOPMENT, TARIFF BARRIERS, TAX, TAX ADVANTAGES, TAX BENEFITS, TAX CREDIT, TAX CREDITS, TAX SUBSIDY, TAX TREATMENT, TAXATION, TECHNOLOGY TRANSFER, TRADE BARRIERS, TRADE DISPUTES, TRADE POLICY, TRADE RESTRICTIONS, TRADE RULES, TRADING SYSTEM, TRANSFER OF FUNDS, TRANSPARENCY, UNFAIR COMPETITION, UNJUSTIFIABLE DISCRIMINATION, URUGUAY ROUND, VENTURE CAPITAL, VENTURE CAPITALIST, WORLD ECONOMY, WORLD MARKET, WORLD TRADE, WORLD TRADE ORGANIZATION, WORLD TRADING SYSTEM, WTO,
Online Access:http://documents.worldbank.org/curated/en/2014/10/20290817/green-subsidies-wto
http://hdl.handle.net/10986/20500
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