Do Institutions And Environmental Policies Affect The Export Of Renewable Energy?

This paper decomposes export trade into intensive margin and extensive margin, and export data to 48 countries about solar and wind energy products of China is used and the sample covers the period of 1996-2013.This paper uses the extended gravity model to analyze the impact of public R&D spending of government on renewable energy industry, the environmental regulation and the quality of institutions on the intensive margin and extensive margin. We find that the public spending of government on renewable energy industry just has a significant influence on the intensive margin of the solar products. The environmental regulation of China always shows U-shaped influence on the intensive margin and extensive margin. Conversely, the environmental regulation of import countries has inverted U-shaped influence on the intensive margin and extensive margin, and the impact of China environmental regulation is greater than import’s. In addition, the influences of import’s environmental regulation are U type and inverted U type respectively. the influences of import’s institutional quality on solar and energy products of China are basically the same,however, the institutional quality of China has no significant impact.