Potential Malaysian Profits from Sustainable Energy Sources in European Markets

Abstract

This study proposes a new framework to include individual European countries, largely ignored in previous studies, to analyze the market margins of Southeast Asian exporters in world markets of sustainable energy trade. We find that the German and Dutch markets underestimate exporter margins compared with the whole EU market. Belgium and France have close and higher magnitudes of market margins, respectively. Another result of interest is that the United Kingdom (U.K.) is insignificant. Malaysian palm oil exporters are price takers in the U.K. where the sustainable energy share of energy production is one of lowest in EU-27.