TY  - RPRT
        AU  - Nouira, Ridha
AU  - Salem, Leila Ben
AU  - Saafi, Sami
AU  - Rault, Christophe
        TI  - Renewable Energy Consumption and International Trade: Does Climate Policy Stringency Matter?
        PY  - 2025/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17955
        UR  - https://www.iza.org/index.php/publications/dp17955
        AB  - This study explores the link between renewable energy consumption and international trade, with a focus on climate policy. We argue that this relationship is nonlinear and shaped by threshold effects. Using a dynamic threshold model (Seo & Shin, 2016), we analyze data from 1990 to 2023 for 29 developed and developing countries. Our results show that climate policy plays a key role in shaping the renewable energy–trade nexus, with effects depending on policy stringency and development level. In developing countries, renewable energy use consistently boosts exports, regardless of policy stringency. In contrast, in developed countries, strict policies reduce import dependence—signaling energy independence—but may also weaken renewable energy’s positive trade effects due to higher compliance costs and regulatory barriers. These findings call for tailored strategies: developed countries should balance ambitious climate goals with trade efficiency by easing regulatory burdens and promoting international policy coordination, while developing countries can use renewable energy to enhance exports, attract investment, and build technological capabilities.
        KW  - climate policy stringency
KW  - international trade
KW  - renewable energy consumption
KW  - dynamic threshold model
KW  - sustainable development
        ER  -