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Driving sustainability: The role of renewable energy export diversity in mitigating export volatility under
1School of Management,China Institute for Studies in Energy Policy, Collaborative Innovation Center for Energy Economics and Energy Policy, Xiamen University, Fujian, 361005, China; Advanced Interdisciplinary Research Center,City University of Macau, Macao, China.
Abstract:
The rising uncertainty in international demand has hindered the development of renewable energy trade, leaving China facing shrinking markets and international orders relocation. To address this issue, export diversification emerges as a crucial strategy for enhancing resilience and stabilizing trade flows. Using 2007-2016 data from Chinese renewable energy export firms, this paper examines how export diversification strategy helps mitigate export fluctuations amid international demand shocks. The research shows that: (1) International demand shocks significantly exacerbate export fluctuations. However, strategic diversification of export markets and products can mitigate the adverse effects. (2) The mechanism analysis suggests that risk dispersion and enhancement of product market share are effective channels for stabilizing export volatility. (3) Heterogeneity analysis indicates that the stabilizing effects vary substantially with trade modes, product categories, and technological complexity. These results provide critical insights for policymakers to enhance renewable energy industry resilience and ensure global industrial and supply chain stability against growing market uncertainties.
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