Analyzing how energy vulnerability, energy efficiency and economic complexity impact climate change: comparative evidence from G7 and BRICST economies
Muhammad Farhan Bashir et al.
What the paper says
Purpose The current study aims to investigate how energy vulnerability, economic complexity, energy efficiency, trade openness and urbanization impact climate change for developed and developing economies. Design/methodology/approach For the econometric analysis, we use a balanced panel dataset for the developing economies (BRICST) and the developed (G7) economies to analyze the climate change and energy vulnerability nexus using cross-sectionally augmented autoregressive distributed lag, augmented mean group, common correlated effects mean group, dynamic common correlated effects model and cross-sectional distributed lag as econometric methodologies. Findings The findings from the econometric analysis reveal that energy vulnerability, urbanization and trade openness exacerbate climate change threats, whereas energy efficiency ensures environmental sustainability. Furthermore, we validate the environmental Kuznets curve hypothesis for economic complexity in the long run. Our findings allow us to document that lower energy vulnerability resolves environmental challenges, increases energy efficiency and ensures energy transition. We further provide a comparative analysis between developed (G7) and emerging economies (BRICST). Originality/value The article offers novel econometric and theoretical contributions that open a path for further dialog by future studies. More specifically, it constructs an original energy vulnerability index to evaluate how it affects climate change threats. From a policy perspective, we report that energy and climate disclosures should reconcile exposures from ecological and energy vulnerability threats. Also, climate diplomacy, local conditions, energy diversification quotas and technological transfer remain key to overcoming climate change and energy vulnerabilities.
6 citations
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.44 × 0.4 = 0.18 |
| M · momentum | 0.65 × 0.15 = 0.10 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.