Geopolitical risks and energy transition: the impact of environmental regulation and green innovation

This study examines the impact of geopolitical risk on energy transition, focusing on the moderating roles of environmental regulations and green innovation within OECD countries. Using multivariate linear and nonlinear regression models, a substantial positive effect of geopolitical risk on energy transition is identified. Stronger environmental regulations and advancements in green innovation significantly amplify this effect. A nonlinear relationship between geopolitical risk and energy transition is detected at varying levels of environmental regulation and green innovation. The influence of geopolitical risk on energy transition grows stronger over time. Findings are robust across various geopolitical risk indicators and regression methods, highlighting the proactive role of geopolitical risk in fostering energy transition. The study emphasizes integrated strategies that harness environmental regulations and technological innovation to facilitate a resilient and efficient energy transition.

Qiang Wang, Xinhua Wang, Rongrong Li