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Geopolitical risk and renewable energy consumption: Evidence from a spatial convergence perspective

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  • Ren, Xiaohang
  • Yang, Wanping
  • Jin, Yi

Abstract

Using country-level data from 1990 to 2020, this study investigates the various convergence of renewable energy consumption (REC) and the effect of geopolitical risk (GPR) on the conditional spatial β convergence. We find that there is a γ-convergence, spatial σ convergence, absolute spatial β convergence and conditional spatial β convergence in terms of REC. GPR is negatively associated with the conditional spatial β convergence of REC. The fluctuation of oil price can be an underlying mechanism behind the correlation of GPR and the conditional spatial β convergence of REC. Our study supplements the prior relevant literature from a spatial convergence perspective to analyze the relationship between GPR and REC. The spatial convergence of REC is conductive to energy security by increasing innovation and efficiency, reducing productive costs and enhancing energy diversity. This sheds light on the growing attention to energy security on the pathways towards carbon neutrality.

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  • Ren, Xiaohang & Yang, Wanping & Jin, Yi, 2024. "Geopolitical risk and renewable energy consumption: Evidence from a spatial convergence perspective," Energy Economics, Elsevier, vol. 131(C).
    • Handle: RePEc:eee:eneeco:v:131:y:2024:i:c:s0140988324000926
    DOI: 10.1016/j.eneco.2024.107384
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    More about this item

    Keywords

    Geopolitical risk; Energy security; Renewable energy consumption; Spatial convergence;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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