Renewable electricity supply, infrastructure, and gains from international trade in electric current

Thomas Ziesemer ()

Applied Economics Letters, 2019, vol. 26, issue 17, 1439-1443

Abstract: 113 countries report producing electricity from renewable sources and participate in the global energy transition. On the one hand more cables have been built recently; but on the other hand some countries are blocking electricity shocks technologically as supply shocks undermine the insurance function of their markets. This paper shows through a dynamic panel data analysis that the higher share of renewables in electricity production has increased imports and decreased exports of electric currents. This shows that trade currently helps dealing with fluctuations of supply, but temporary losses for recipients of shocks may require payments to keep the borders open. Keywords: Gains from trade, electric current, gravity, infrastructure.

Date: 2019
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DOI: 10.1080/13504851.2019.1578849

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