Blog Post

EU poised to copy US subsidies for green technology – new evidence from China shows how it could backfire

Authors

  • Holger Görg
  • Jun Du
Publication Date

The EU is preparing to abandon its longstanding restrictions on state aid to take on US and Chinese subsidies over green technologies. European Commission president Ursula von der Leyen is spearheading a new commitment from EU leaders to “act decisively to ensure its long-term competitiveness, prosperity and role on the global stage”.

Kiel Institute Expert

Info

JEL Classification
H25; H32; L25

Key Words

  • China
  • externalities
  • firm performance
  • subsidies
  • treatment effects