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

Onno Kuik, Frédéric Branger, Philippe Quirion

Research output: Contribution to JournalArticleAcademicpeer-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.

LanguageEnglish
Pages472-481
Number of pages10
JournalRenewable Energy
Volume131
DOIs
StatePublished - 1 Feb 2019

Fingerprint

Gravitation
Energy policy
Industry
International trade
Environmental regulations

Keywords

  • Competitive advantage
  • Gravity model
  • Green growth
  • Solar PV industry
  • Wind industry

Cite this

Kuik, Onno ; Branger, Frédéric ; Quirion, Philippe. / Competitive advantage in the renewable energy industry : Evidence from a gravity model. In: Renewable Energy. 2019 ; Vol. 131. pp. 472-481
@article{11e807f7f99f4c7597ef4522cb83fd81,
title = "Competitive advantage in the renewable energy industry: Evidence from a gravity model",
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.",
keywords = "Competitive advantage, Gravity model, Green growth, Solar PV industry, Wind industry",
author = "Onno Kuik and Fr{\'e}d{\'e}ric Branger and Philippe Quirion",
year = "2019",
month = "2",
day = "1",
doi = "10.1016/j.renene.2018.07.046",
language = "English",
volume = "131",
pages = "472--481",
journal = "Renewable Energy",
issn = "0960-1481",
publisher = "Elsevier BV",

}

Competitive advantage in the renewable energy industry : Evidence from a gravity model. / Kuik, Onno; Branger, Frédéric; Quirion, Philippe.

In: Renewable Energy, Vol. 131, 01.02.2019, p. 472-481.

Research output: Contribution to JournalArticleAcademicpeer-review

TY - JOUR

T1 - Competitive advantage in the renewable energy industry

T2 - Renewable Energy

AU - Kuik,Onno

AU - Branger,Frédéric

AU - Quirion,Philippe

PY - 2019/2/1

Y1 - 2019/2/1

N2 - 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.

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.

KW - Competitive advantage

KW - Gravity model

KW - Green growth

KW - Solar PV industry

KW - Wind industry

UR - http://www.scopus.com/inward/record.url?scp=85053179973&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85053179973&partnerID=8YFLogxK

U2 - 10.1016/j.renene.2018.07.046

DO - 10.1016/j.renene.2018.07.046

M3 - Article

VL - 131

SP - 472

EP - 481

JO - Renewable Energy

JF - Renewable Energy

SN - 0960-1481

ER -