Renewable-energy consumption and international trade
This paper investigates the implications for international trade of a country’s dependence on renewable energy consumption in total energy use. We use data for 152 countries over the period 1990–2014. We estimate a gravity equation of bilateral trade to assess the role of renewable energy consumptio...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Elsevier
2022-11-01
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| Series: | Energy Reports |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2352484722016535 |
| _version_ | 1797901936914071552 |
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| author | Nneamaka Ilechukwu Sajal Lahiri |
| author_facet | Nneamaka Ilechukwu Sajal Lahiri |
| author_sort | Nneamaka Ilechukwu |
| collection | DOAJ |
| description | This paper investigates the implications for international trade of a country’s dependence on renewable energy consumption in total energy use. We use data for 152 countries over the period 1990–2014. We estimate a gravity equation of bilateral trade to assess the role of renewable energy consumption on international trade. We find, inter alia, that a 1% increase in the use of renewable energy as a proportion of total energy leads to, on an average, a 1.026% decrease in exports, and a 0.39% increase in imports, suggesting that renewable energy use makes trade less competitive. This outcome is due in part to cost implications of using renewable energy sources. However, we also find some heterogeneity in this respect. Whereas Organization for Economic Co-operation and Development (OECD) countries export more with increased use of renewable energy, for non-OECD countries renewable energy use reduces exports. |
| first_indexed | 2024-04-10T09:08:43Z |
| format | Article |
| id | doaj.art-598062a92f364bd4b8136f669a765a5d |
| institution | Directory Open Access Journal |
| issn | 2352-4847 |
| language | English |
| last_indexed | 2024-04-10T09:08:43Z |
| publishDate | 2022-11-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Energy Reports |
| spelling | doaj.art-598062a92f364bd4b8136f669a765a5d2023-02-21T05:12:56ZengElsevierEnergy Reports2352-48472022-11-0181062410629Renewable-energy consumption and international tradeNneamaka Ilechukwu0Sajal Lahiri1Division of Social & Behavioral Science, Snow College, Ephraim, UT, USASchool of Analytics, Finance and Economics, Southern Illinois University Carbondale, Carbondale, IL 62901, USA; Corresponding author.This paper investigates the implications for international trade of a country’s dependence on renewable energy consumption in total energy use. We use data for 152 countries over the period 1990–2014. We estimate a gravity equation of bilateral trade to assess the role of renewable energy consumption on international trade. We find, inter alia, that a 1% increase in the use of renewable energy as a proportion of total energy leads to, on an average, a 1.026% decrease in exports, and a 0.39% increase in imports, suggesting that renewable energy use makes trade less competitive. This outcome is due in part to cost implications of using renewable energy sources. However, we also find some heterogeneity in this respect. Whereas Organization for Economic Co-operation and Development (OECD) countries export more with increased use of renewable energy, for non-OECD countries renewable energy use reduces exports.http://www.sciencedirect.com/science/article/pii/S2352484722016535Fossil fuel useGravity modelInternational tradeRenewable energy use |
| spellingShingle | Nneamaka Ilechukwu Sajal Lahiri Renewable-energy consumption and international trade Energy Reports Fossil fuel use Gravity model International trade Renewable energy use |
| title | Renewable-energy consumption and international trade |
| title_full | Renewable-energy consumption and international trade |
| title_fullStr | Renewable-energy consumption and international trade |
| title_full_unstemmed | Renewable-energy consumption and international trade |
| title_short | Renewable-energy consumption and international trade |
| title_sort | renewable energy consumption and international trade |
| topic | Fossil fuel use Gravity model International trade Renewable energy use |
| url | http://www.sciencedirect.com/science/article/pii/S2352484722016535 |
| work_keys_str_mv | AT nneamakailechukwu renewableenergyconsumptionandinternationaltrade AT sajallahiri renewableenergyconsumptionandinternationaltrade |