Evolution and Impacting Factors of Global Renewable Energy Products Trade Network: An Empirical Investigation Based on ERGM Model

Abstract

Global trade of renewable energy products has increased significantly in recent years. This paper constructs an analytical framework of a global trade network for renewable energy products based on bilateral trade data between 2009 and 2019. It analyses its structural evolution at the global and local levels and investigates the influencing factors of the network with the Exponential Random Graph Model. The empirical results indicate that countries in the trade network have become more closely connected, featuring a core-periphery and increasing reciprocity relationship. China, Germany, and Japan have remained in the position of core countries; China has especially been prominent among core countries. Our empirical results verify that the sender-receiver effects can explain the evolution of this global trade network. The empirical results also indicate that the climate change agreement network and the common border network have positive effects on the formation of the trade network. As regards political implications, the core countries in the trade network should optimize the layout of renewable energy development and improve infrastructure accordingly. Countries should also jointly build a more fair and reasonable multilateral system that fulfills their responsibilities.