China’s Potential for Trade in Renewable Energy Products in RCEP Countries: A Gravity Model Analysis

Abstract

China’s renewable energy products have an important place in international trade, and the conclusion of the RCEP agreement can create favourable external conditions for China’s renewable energy product exports. This paper measures the export potential of China’s renewable energy products to other RCEP countries through a trade gravity model. The results show that (1) the GDP of the importing and exporting countries, the energy consumption of the importing countries, and the particulate emissions damage significantly enhance China’s renewable energy product exports; (2) among the RCEP countries, China has a greater potential to export renewable energy products to five countries in 2020, which are mainly located in East and Southeast Asia; and (3) from a dynamic perspective, China’s renewable energy trade potential is increasing, while in the Oceania region it is weakening, while trade links to Southeast Asian countries are developing in a more mature direction. Based on the above research, this paper puts forward corresponding policy recommendations.