Welfare gains from international trade and renewable energy demand: Evidence from the OECD countries

Zhou Lu, Giray Gözgör, Mantu Kumar Mahalik, Hemachandra Padhan and Cheng Yan

Energy Economics, 2022, vol. 112, issue C

Abstract: This paper uses a new measure of international trade, i.e. the international trade potential index, to measure the welfare gains from trade across countries. The measure is based on the import shares of countries in their gross domestic products. It is observed that gains from international trade are low in prosperous economies, but they are larger in poorer economies. Then, the paper investigates the impact of the index of international trade potential on renewable energy consumption in the unbalanced panel dataset of 36 Organisation for Economic Co-operation and Development member countries from 1966 to 2016. The novel evidence is that international trade potential is positively related to renewable energy consumption. It is also found that per capita income, per capita carbon dioxide emissions, and energy prices increase the demand for renewable energy.

Keywords: Renewable energy demand; Renewable energy consumption; International trade; Trade openness; International trade potential index; Panel data estimation techniques (search for similar items in EconPapers)
JEL-codes: O13 Q42 Q43 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:112:y:2022:i:c:s0140988322003085

DOI: 10.1016/j.eneco.2022.106153

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