1. SOLYNDRA CASE SUMMARY EC 1400 / ITF 225 November 5, 2015

2. 2010201120122013199720052009 Copenhagen Summit CLIMATE CHANGE AGREEMENTS Cancun Ministerial Kyoto Protocol

3. 2010201120122013199720052009 Copenhagen Summit US INDUSTRIAL POLICIES US Clean Energy Act Cancun Ministerial Kyoto Protocol Stimulus Bill 1705 Loan Guarantee Tax credits Gold Rush continues 1603 grants Solyndra receives half a billion

4. 2010201120122013199720052009 Copenhagen Summit CHINESE INDUSTRIAL POLICIES US Clean Energy Act Cancun Ministerial Kyoto Protocol Stimulus Bill 1705 Loan Guarantee Tax credits Gold Rush continues 1603 grants Solyndra receives half a billion Massive Chinese investment (50bn) Debt financing, loan guarantees, land grants, “green stimulus package”

5. 2010201120122013199720052009 Copenhagen Summit TRADE DISPUTES Solar panel prices crashing USW complaint to USG WTO trade dispute US Clean Energy Act Kyoto Protocol Stimulus Bill 1705 Loan Guarantee Tax credits Debt financing, loan guarantees, land grants, “green stimulus package” Cancun Ministerial Gold Rush 1603 grants Solyndra receives half a billion Massive Chinese investment (50bn)

6. 2010201120122013199720052009 Copenhagen Summit TRADE DISPUTES US Clean Energy Act Kyoto Protocol Solyndra files for bankruptcy China 50% market share US solar industry files DoC complaint Stimulus Bill 1705 Loan Guarantee Tax credits Debt financing, loan guarantees, land grants, “green stimulus package” Solar panel prices crashing USW complaint to USG WTO trade dispute Cancun Ministerial Gold Rush 1603 grants Solyndra receives half a billion Massive Chinese investment (50bn)

7. 2010201120122013199720052009 Copenhagen Summit TRADE DISPUTES, SUPPLY CHAIN DOC imposes 24- 36% tariff on Chinese solar panel imports US installation, service companies opposed US Clean Energy Act Kyoto Protocol Stimulus Bill 1705 Loan Guarantee Tax credits Solyndra files for bankruptcy China 50% market share US solar industry files DoC complaint Debt financing, loan guarantees, land grants, “green stimulus package” Solar panel prices crashing USW complaint to USG WTO trade dispute Cancun Ministerial Gold Rush 1603 grants Solyndra receives half a billion Massive Chinese investment (50bn)

8. 2010201120122013199720052009 Copenhagen Summit TRADE DISPUTES, SUPPLY CHAIN EU solar manufacturers complaint 48% tariff imposed European polysilicon suppliers, French wine targeted DOC imposes 24- 36% tariff on Chinese solar panel imports US installation, service companies opposed US Clean Energy Act Kyoto Protocol Solyndra files for bankruptcy China 50% market share US solar industry files DoC complaint Stimulus Bill 1705 Loan Guarantee Tax credits Solar panel prices crashing USW complaint to USG WTO trade dispute Cancun Ministerial Gold Rush 1603 grants Solyndra receives half a billion Massive Chinese investment (50bn)

9. WTO disputes, retaliation US EU installation, US EU polysilicon, China photovoltaics US, China, EUKyoto, Copenhagen, Cancun Global Climate Change National Industrial Policies Free Trade and Conflict Global Supply Chain

10. The Trilemma

16. Intervention must be targeted Identify the market failure. Intervene in most precise way possible. But it is remarkable how infrequently this happens in practice! Why?