Rethinking energy security in the condition of high climate risk: fresh insights from new estimation

Purpose The objective of this investigation is to discover the impacts of energy security (ES) pursuit on climate risk (CR). Notably, we also evaluate the role of institutional quality in signifying the effects of ES on CR. Design/methodology/approach Six metrics to assess the availability, acceptability, developability and sustainability of energy security are used while we consider nine dimensions of climate risk. We employ several econometric methods, namely the panel-corrected standard error (PCSE) and feasible generalized least squares (FGLS), to a global sample of 65 countries during the 2014–2021 period. Furthermore, long-term impacts are estimated using the dynamic fixed effects (DFE) estimate, which is applied using the autoregressive distributed lag (ARDL) technique. Findings The estimation outcomes demonstrate that the pursuit of ES mitigates CR. By using a variety of econometric methodologies and using additional explanation factors, we obtain reliable conclusions. The outcomes propose that the favourable impacts of ES initiatives are more likely to exist in the long run. Notably, ES impacts are more substantial in nations with well-designed institutional systems. Practical implications Our study is critical since the findings offer pertinent implications for policymakers and authorities in designing appropriate policies regarding energy security initiatives on the path towards climate resilience and environmental sustainability. Originality/value Our work adds to the body of literature by considering various cross-country characteristics, with a focus on variations in the degree of energy security. Our study adds to the previous paper on the effects of climate modification by pointing out the way those heterogeneities shape the magnitude of harm attributed to climate shifts. Specifically, we examine how these differences influence climate modification’s effects on the threat to power safety and the effectiveness of policy strategies. By using this method, we can offer more individualized policy implications that consider variations across nations in the formulation of policies.