Solar energy embodied in international trade of goods and services: A multi-regional input-output approach

In a globalized market, part of the goods/services consumed in a country might be produced abroad using diverse energy sources. To properly assess the extent to which a country is moving towards more sustainable energy sources, it is imperative to consider both, the amount of renewable energy produced within its boundaries along with that embodied in the imported goods/services. This work quantifies the amount of solar energy embodied in trade using environmentally extended input output models. Numerical results reveal that some countries are net importers of solar energy (the amount of solar energy consumed anywhere in the world for producing the goods and services they require is greater than the amount of solar energy they generate locally), while others are net exporters (the opposite situation occurs). Additionally, it was found that the production of solar energy in the top economies has increased in the last two decades. Our analysis aims to facilitate the design of more effective environmental policies for promoting the use of solar energy worldwide. (C) 2015 Elsevier Ltd. All rights reserved.