Trade as a channel for environmental technologies diffusion
The case of the wind turbine manufacturing industry
Only a small number of companies, located in a few countries, have specific technological
expertise in wind turbine manufacturing. New quantitative analysis shows this expertise
to be a significant driver of trade in wind turbines. Moreover, countries’ wind power
generation efficiency is shown to depend on access to higher quality wind turbines
available in international markets. Trade in wind turbines thus provides access to
technologies with a level of efficiency that cannot be replicated domestically in
importing countries. These results have important policy implications: i) barriers
to trade in wind turbines are also barriers to the dissemination of key environmental
technologies which are not otherwise widely available; ii) trade-discriminatory measures
can also negatively impact non-manufacturing job creation in the renewable sector,
as this relies on the continuous deployment of wind energy, which in turn depends
on access to high quality turbines from international markets; and iii) policies should
not focus on the creation of national champions, but rather on ensuring that domestic
firms can apply their specific capabilities to new opportunities in the global value
chains of renewables industries.
Published on February 02, 2021
In series:OECD Trade and Environment Working Papersview more titles