Green productivity and energy security risk

This paper investigates the impact of green productivity on energy security risk using OECD data. We find consistent evidence that green productivity reduces energy security risk, with effects persisting over time and compounding to deliver substantial risk reductions. Robustness checks, including demand-based measures, instrumental variables, and a change-in-variable analysis, support the reliability and causal interpretation of the results. A U-shaped relationship emerges: green productivity is most effective at lowering risk in low- and moderate-risk contexts but less so in high-risk settings. These findings suggest the need for targeted policies tailored to existing energy security risk levels.