We develop a general equilibrium model of trade with multiple countries and industries in the spirit of Eaton and Kortum (2002) and Bernard, Eaton, Jensen, and Kortum (2003). We structurally estimate the parameters of the model and calibrate it to data on 33 OECD countries and one country that...

Meeting the growing demand for energy, and electricity in particular, while addressing the need to curb greenhouse gas emissions and to ensure security of energy supply, is one of the most difficult challenges facing the world’s economies. No single technology can respond to this challenge,...