EU Minimum Import Price: Implementation and Removal–Difference-in-Differences and Event-Study Evidence on Chinese PV Module Exports to the EU
EU Minimum Import Price: Implementation and Removal–Difference-in-Differences and Event-Study Evidence on Chinese PV Module Exports to the EU

Author(s): Jingxin Hu
Subject(s): Economy, Supranational / Global Economy, Business Economy / Management
Published by: Институт за икономически изследвания при Българска академия на науките
Summary/Abstract: Using monthly customs data from the EU-27 from 2010 to 2019, this paper examines the causal impact of two institutional shocks, the implementation and removal of the Minimum Import Price (MIP), on Chinese PV module exports to Europe. Identification combines a China-vs-others difference-in-differences with importer-by-month fixed effects and importer-clustered standard errors, plus event studies centered on both policy dates. MIP implementation significantly depressed imports from China; after removal, China’s share rose significantly relative to other sources. The evidence shows that, under the green transition, switching from trade defense to deregulation quickly reconfigures source composition and concentration, offering quantitative guidance for industry–trade policies that jointly pursue decarbonization and supply-chain resilience.

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