Work

Empowering energy security: The impact of geopolitical risks on green total factor energy efficiency

Year: 2025

Type: article

Abstract: Geopolitical risks (GPR) have long posed significant challenges to global energy security and environmental sustainability. This paper investigates a critical dimension of energy security by constructing a Green Total Factor Energy Efficiency (GTFEE) index, derived from the super-efficiency SBM model, to examine the impact of geopolitical risk on energy efficiency across 43 countries from 1998 to 2022. Employing instrumental variable quantile regression, the results show a positive relationship between GPR and GTFEE, with the effect becoming stronger at higher GTFEE quantiles. This impact is more pronounced in developing economies with mid-to-low income levels than in high-income developed nations. Furthermore, using a regression discontinuity design, the study finds that events such as military conflicts, international tensions, and Public Health Emergencies of International Concern (PHEIC) significantly increase GTFEE. Complementary analysis based on the World Energy Trilemma Index further indicates that geopolitical risks enhance energy security and environmental sustainability. These findings provide policymakers and practitioners with empirical insights to optimize energy management strategies, strengthen resilience against geopolitical uncertainties, and promote sustainable energy practices on a global scale.

Source: Energy Economics

DOI: 10.1016/j.eneco.2025.108924

Authors: Ziang Qiu, Xibin Zhang, Yang Zhang

Institution: University of Macau

Language: English

Topic: Global Energy Security and Policy

Subfield: General Energy

Field: Energy

Domain: Physical Sciences

SDGs: Affordable and clean energy, Peace, justice, and strong institutions, Climate action

Open Access status: hybrid

Estimated APC paid: $4,280