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Role of policy in innovation and international trade of renewable energy technology: Empirical study of solar PV and wind power technology

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  • Kim, Kyunam
  • Kim, Yeonbae

Abstract

To develop renewable energy technologies for sustainable economic growth as well as environmental solutions, firms must consider domestic technological diffusion and foreign trade competitiveness. In this paper, we identify interrelations between domestic R&D and international trade as well as seek to determine the role of renewable energy policies. We estimate the model by using unbalanced panel data, obtained between 1991 and 2008, from 16 countries using solar PV and 14 countries using wind power. The empirical results confirm that international markets may affect domestic R&D of mature technologies more than that of immature technologies, and intensified domestic R&D corresponds to increased exports and imports. This study also shows that wind power is in a virtuous cycle with respect to R&D and exports. In addition, public R&D and tariff incentives are significant instruments for increasing international trade as well as domestic R&D.

Suggested Citation

  • Kim, Kyunam & Kim, Yeonbae, 2015. "Role of policy in innovation and international trade of renewable energy technology: Empirical study of solar PV and wind power technology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 717-727.
  • Handle: RePEc:eee:rensus:v:44:y:2015:i:c:p:717-727 DOI: 10.1016/j.rser.2015.01.033
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    Cited by:

    1. Zhao, Zhen-Yu & Yang, Hui-Jia & Zuo, Jian, 2017. "Evolution of international trade for photovoltaic cells: A spatial structure study," Energy, Elsevier, vol. 124(C), pages 435-446.
    2. repec:eee:rensus:v:78:y:2017:i:c:p:1397-1409 is not listed on IDEAS
    3. Abbas Mardani & Ahmad Jusoh & Edmundas Kazimieras Zavadskas & Fausto Cavallaro & Zainab Khalifah, 2015. "Sustainable and Renewable Energy: An Overview of the Application of Multiple Criteria Decision Making Techniques and Approaches," Sustainability, MDPI, Open Access Journal, vol. 7(10), pages 1-38, October.
    4. Qing Guan & Haizhong An & Xiaoqing Hao & Xiaoliang Jia, 2016. "The Impact of Countries’ Roles on the International Photovoltaic Trade Pattern: The Complex Networks Analysis," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-16, March.
    5. Bigerna, Simona & Bollino, Carlo Andrea & Micheli, Silvia, 2016. "Renewable energy scenarios for costs reductions in the European Union," Renewable Energy, Elsevier, vol. 96(PA), pages 80-90.
    6. repec:gam:jsusta:v:9:y:2017:i:9:p:1549-:d:110864 is not listed on IDEAS
    7. repec:gam:jsusta:v:8:y:2016:i:4:p:313:d:66767 is not listed on IDEAS
    8. Xiong, Yongqing & Yang, Xiaohan, 2016. "Government subsidies for the Chinese photovoltaic industry," Energy Policy, Elsevier, vol. 99(C), pages 111-119.
    9. Guillaume Bourgeois & Sandrine Mathy & Philippe Menanteau, 2017. "The effect of climate policies on renewable energies : a review of econometric studies
      [L’effet des politiques climatiques sur les énergies renouvelables : une revue des études économétriques]
      ," Post-Print hal-01585906, HAL.
    10. repec:eee:enepol:v:106:y:2017:i:c:p:22-31 is not listed on IDEAS
    11. Yu, Feifei & Guo, Yue & Le-Nguyen, Khuong & Barnes, Stuart J. & Zhang, Weiting, 2016. "The impact of government subsidies and enterprises’ R&D investment: A panel data study from renewable energy in China," Energy Policy, Elsevier, vol. 89(C), pages 106-113.
    12. Kyunam Kim & Eunnyeong Heo & Yeonbae Kim, 2017. "Dynamic Policy Impacts on a Technological-Change System of Renewable Energy: An Empirical Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 205-236.

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