IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v85y2025icp963-978.html
   My bibliography  Save this article

Climate finance for energy security: An empirical analysis from a global perspective

Author

Listed:
  • Lee, Chi-Chuan
  • Fang, Yuzhu

Abstract

Energy security has always been a global concern. Based on the OECD project database and employing a new data processing method, this research takes 80 countries as a sample to empirically analyze climate finance's impact on energy security from 2010 to 2020. The results indicate that climate finance significantly positively affects energy security of recipient countries. Particularly, its effect at enhancing energy security is more pronounced in lower-income countries, whereas in contrast its impact on high-income countries is not significant. Additionally, countries with balance of payments deficits benefit more from climate finance. Regarding potential impact mechanisms, technological progress is important through which climate finance affects energy security, while no significant correlation appears with private sector energy investment. Moreover, quantile regression analysis demonstrates a more pronounced positive impact of climate finance on countries with lower energy security levels. Conversely, the threshold regression model indicates a negative effect of climate finance on energy security in nations with weaker global governance capacity. Drawing upon these findings, this paper presents targeted policy recommendations aimed at optimizing the distribution of global climate finance and resources, fostering the attainment of international climate objectives, and promoting sustainable economic development.

Suggested Citation

  • Lee, Chi-Chuan & Fang, Yuzhu, 2025. "Climate finance for energy security: An empirical analysis from a global perspective," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 963-978.
  • Handle: RePEc:eee:ecanpo:v:85:y:2025:i:c:p:963-978
    DOI: 10.1016/j.eap.2025.01.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592625000086
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eap.2025.01.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Climate change; Climate finance; Energy security; Global evidence;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:85:y:2025:i:c:p:963-978. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.