Competitive advantage in the renewable energy industry: Evidence from a gravity model

Onno Kuik; Frédéric Branger; Philippe Quirion

doi:10.1016/j.renene.2018.07.046

Competitive advantage in the renewable energy industry: Evidence from a gravity model

Onno Kuik^*, Frédéric Branger, Philippe Quirion

^*Corresponding author for this work

Environmental Economics

Research output: Contribution to Journal › Article › Academic › peer-review

Abstract

Pioneering domestic environmental regulation may foster the creation of new eco-industries. These industries could benefit from a competitive advantage in the global market place. This article examines empirical evidence of the impact of domestic renewable energy policies on the export performance of renewable energy products (wind and solar PV). We use a gravity model of international trade with a balanced dataset of 49 (for wind) and 40 (for PV) countries covering the period 1995–2013. The stringency of renewable energy policies is proxied by installed capacities. Our econometric model shows evidence of competitive advantage positively correlated with domestic renewable energy policies, sustained in the wind industry but brief in the solar PV industry. We suggest that the reason for the dynamic difference lies in the underlying technologies involved in the two industries.

Original language	English
Pages (from-to)	472-481
Number of pages	10
Journal	Renewable Energy
Volume	131
DOIs	https://doi.org/10.1016/j.renene.2018.07.046
Publication status	Published - 1 Feb 2019

Funding

This work was supported by the European Commission [FP7 project CECILIA2050, grant number 308680 ].

Funders	Funder number
Seventh Framework Programme	308680, CECILIA2050
European Commission

Keywords

Competitive advantage
Gravity model
Green growth
Solar PV industry
Wind industry

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.renene.2018.07.046

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abstract = "Pioneering domestic environmental regulation may foster the creation of new eco-industries. These industries could benefit from a competitive advantage in the global market place. This article examines empirical evidence of the impact of domestic renewable energy policies on the export performance of renewable energy products (wind and solar PV). We use a gravity model of international trade with a balanced dataset of 49 (for wind) and 40 (for PV) countries covering the period 1995–2013. The stringency of renewable energy policies is proxied by installed capacities. Our econometric model shows evidence of competitive advantage positively correlated with domestic renewable energy policies, sustained in the wind industry but brief in the solar PV industry. We suggest that the reason for the dynamic difference lies in the underlying technologies involved in the two industries.",

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AB - Pioneering domestic environmental regulation may foster the creation of new eco-industries. These industries could benefit from a competitive advantage in the global market place. This article examines empirical evidence of the impact of domestic renewable energy policies on the export performance of renewable energy products (wind and solar PV). We use a gravity model of international trade with a balanced dataset of 49 (for wind) and 40 (for PV) countries covering the period 1995–2013. The stringency of renewable energy policies is proxied by installed capacities. Our econometric model shows evidence of competitive advantage positively correlated with domestic renewable energy policies, sustained in the wind industry but brief in the solar PV industry. We suggest that the reason for the dynamic difference lies in the underlying technologies involved in the two industries.

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KW - Green growth

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KW - Wind industry

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Competitive advantage in the renewable energy industry: Evidence from a gravity model

Abstract

Funding

Keywords

UN SDGs

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