Environmental Regulation; Solar Energy Technology Components and International Trade - An Empirical Analysis of Structure and Drivers

Felix Groba
German Institute of Economic Research, Berlin, Germany

Ladda ner artikelhttp://dx.doi.org/10.3384/ecp110573670

Ingår i: World Renewable Energy Congress - Sweden; 8-13 May; 2011; Linköping; Sweden

Linköping Electronic Conference Proceedings 57:1, s. 3670-3677

Visa mer +

Publicerad: 2011-11-03

ISBN: 978-91-7393-070-3

ISSN: 1650-3686 (tryckt), 1650-3740 (online)


Dynamics of the global renewable energy market are mostly described in terms of investment and added capacity. The role and characteristics of cross border trade flows with renewable energy system components; however; remains blurred. While national environmental regulation and innovative capacity is important for the promotion of renewable energies the effect of regulation and innovative efforts on export dynamics remains ambiguous as empirical studies on the pollution haven and the Porter hypothesis reach diverging conclusions and rarely focus on the renewable energy sector. This paper closes the gap by: First; focusing on solar energy technology components; structure and development of international trade since 1996 is analyzed. Second; determinants of OECD exports are identified in an econometric panel study estimating a gravity trade model. The results unveil a highly dynamic global market for solar energy technology components since 2002; with Europe as dominant market and increasingly strong exports from China. Additionally; the analysis supports the Porter hypothesis as countries with a strong framework supporting renewable energies have gained a comparative advantage in exporting solar technology goods. Analyzing the importer side shows that tariff reduction and FDI inflows have increased imports.


Renewable Energies; International Trade; Trade Barriers; Regulation


[1] REN 21; 2009. Renewables Global Status Report: 2009 Update; 2009; Paris.

[2] Tinbergen; J.; 1962. Shaping the World Economy; Twentieth Century Fund; New York.

[3] Jug; J.; Mirza; D.; 2005. Environmental regulations in gravity equations: evidence from Europe; World Economics 28(11); pp.1591-1615. doi: 10.1111/j.1467-9701.2005.00748.x.

[4] OECD; 1999. The environmental goods and services industry manual for data collection and analysis; Paris.

[5] Dechezleprêtre; A.; Hascic; I.; 2008. Invention and Transfer of Climate Change Technology on a Global Scale: A Study Drawing on Panel Data; Paris; 2008.

[6] Harris; M.; et al.; 2002. Modeling the Impact of Environmental Regulation on Bilateral Trade Flows: OECD; 1990 -1996; in: The World Economy; vol.25 (3); 2002; pp.387-407. doi: 10.1111/1467-9701.00438.

[7] Constantini; V.; Crespi; F.; 2008. Environmental regulation and the export dynamics of energy technologies; in: Ecological Economics 66(2008); pp. 447-460. doi: 10.1016/j.ecolecon.2007.10.008.

[8] Braun; F.; et.al.; 2010. Innovative Activity in wind and solar technology: empirical evidence on knowledge spillovers using patent data; DIW Discussion Paper XI992/2010; Berlin.

[9] Makki; S.; 2007. Impact of Foreign Direct Investment and Trade on Economic Growth; Washington.

Citeringar i Crossref