How does international trade network affect multinational diffusion of wind power technology?

Abstract

This study used cross-country trade data of wind-generated power to construct the international trade network which the countries act as the vertices and trade flows between countries act as the arcs. We examined the trade networks' roles in determining the diffusion of wind power technology across countries from two perspectives: pooled effect produced by an entire international trade network, and individual effect produced by an identified country with advanced technology. Empirical results reveal that different facets of the structure of the international trade networks exhibit either positive or negative spillover effects: country cohorts that are more clustered and closer in the international trade network generate a negative impact on the diffusion of wind power technology, while acting as the trade intermediate between other countries generates a positive impact. We simplified the trade networks and presented the diagram that outlines the paths in which diffusion occurs in the “global pool” of wind power technology. This diagram identifies the countries that generate significant spillover effects on others and thus provides us further knowledge about the diffusion pattern of wind power technology throughout the globe, which in turn benefits energy restructuring and risk hedging of global warming.