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

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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.

    Research areas

  • Gains from trade, electric current, infrastructure, gravity, GMMSYS, PANEL-DATA
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Details

Original languageEnglish
Article numberAEL-2018-0294
Pages (from-to)1439-1443
Number of pages5
JournalApplied Economics Letters
Volume26
Issue number17
DOIs
Publication statusPublished - 7 Oct 2019