Foreign Trade and Renewable Energy Consumption: The Case of OECD and Turkey

Abstract

In this study, the impact of renewable energy consumption (REC) on foreign trade (FT) over the period of 2004-2017 in 27 OECD countries is analyzed via panel data analysis. In the study, the relationship between REC and FT is tested using the Driscoll-Kraay estimator within the framework of the panel regression model. The results obtained in the study indicate that the increase in REC raises exports and decrease imports. We also present the importance of the renewable energy (RE) trend in order to improve the FT balance as a policy suggestion in the study. As we move from non-RE to renewable energy, the FT balance would improve.