Trade and the Sustainable Energy Transition: Exploring the Impact of Trade on Total Factor Renewable Energy Efficiency
Lei Zhang,
Liang Xie,
Xianzhong Mu () and
Guangwen Hu
Additional contact information
Lei Zhang: Institute of Circular Economy, Beijing University of Technology, Beijing 100124, China
Liang Xie: Institute of Circular Economy, Beijing University of Technology, Beijing 100124, China
Xianzhong Mu: Institute of Circular Economy, Beijing University of Technology, Beijing 100124, China
Guangwen Hu: Institute of Circular Economy, Beijing University of Technology, Beijing 100124, China
Sustainability, 2025, vol. 17, issue 4, 1-27
Abstract:
Improving total factor renewable energy efficiency (TFREE) is crucial for developed countries to achieve a sustainable energy transformation. International trade is an important source of technological progress and may significantly promote TFREE. However, previous studies have largely overlooked the impact of trade on TFREE. To this end, this study attempts to examine the impact of trade on TFREE of 28 major, developed countries. The main findings are as follows: trade significantly improves TFREE; in terms of the magnitude of the effect, export is greater than import, and trade in goods is greater than trade in services. Trade in most industries promotes TFREE, but trade in the ores and metals industry inhibits TFREE. Trade can only promote TFREE in countries with a high human capital level, high renewable energy infrastructure level, and high institutional quality level. The lag effect of trade on TFREE shows an inverted U shape over time; the nonlinear impact of trade on TFREE shows an N shape as TFREE increases. Biased technological progress and technological improvement effects are the main paths for trade to enhance TFREE. This paper can provide a reference for developed countries to formulate appropriate trade policies to improve TFREE.
Keywords: trade; total factor renewable energy efficiency; technological progress bias; technological progress path (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://www.mdpi.com/2071-1050/17/4/1566/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/4/1566/ (text/html)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:4:p:1566-:d:1590854
Access Statistics for this article
Sustainability is currently edited by Ms. Alexandra Wu
More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().