Socioeconomic Determinants of Climate Stress in the Next‐11 Economies: The Roles of Energy Intensity, Human Development, Governance, and Renewable Transition

ABSTRACT The impact of energy intensity (EI), urbanization (URB), human development (HDI), institutional quality (IQ), and renewable energy (RE) on climate stress in the Next‐11 (N‐11) economies is examined in this study. Through the use of cutting‐edge econometric methods such as MMQR, FGLS, and DKSE estimations, the study offers a solid evaluation of the impact of these variables on climate stress at various places in the conditional data distribution. Climate stress is exacerbated by increasing energy intensity and fast urbanization, according to the data, but it is greatly reduced by increased use of renewable energy sources and better institutional frameworks. Rather than reducing stress, human development has a non‐linear effect, making things worse at first due to increased consumption and then better at mitigating it due to increased technological capability and environmental consciousness. A key tool for facilitating sustainable transitions and enforcing climate‐responsive governance is the quality of institutions. To reduce climate stress and achieve balanced, sustainable growth, the results show that institutional strength, energy efficiency, and renewable adoption must be well‐managed. This report provides useful information for policymakers in developing nations that are aiming to achieve the Sustainable Development Goals (SDGs), especially SDG 7 (Clean and Affordable Energy) and SDG 13 (Climate Action).