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Environmental regulations or environmental-related technology to overcome energy security risk? Empirical analysis for top manufacturing countries

Author

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  • Aslam, Naveed
  • Yang, Wanping
  • Saeed, Rabia

Abstract

This research analyzes the trade-off between environmental regulations and environment-related technology as a solution to overcome energy security risks in 23 top manufacturing countries for the period 1995 to 2018. This is the first study examining the effects of environmental regulations and environment-related technology on energy security risk. According to the results from a Panel quantile regression (PQL) and feasible generalized least squares (FGLS), environmental regulation is an optimum solution to overcome energy security risk in selected countries while environment-related technology at a certain level can be used to decrease energy-related risk. Moreover, the interactive effects of environmental regulations and environmental technology can be highly influential in limiting energy-related risks. Furthermore, the export sector increases risk while manufacturing imports and GDP growth decrease energy-related risks. This study recommends formulating and implementing environmental regulations in controlling energy security risks. This study further recommends reducing exports and increasing manufacturing imports to overcome domestic energy consumption from production units to overcome energy-related risks.

Suggested Citation

  • Aslam, Naveed & Yang, Wanping & Saeed, Rabia, 2024. "Environmental regulations or environmental-related technology to overcome energy security risk? Empirical analysis for top manufacturing countries," Energy Policy, Elsevier, vol. 195(C).
    • Handle: RePEc:eee:enepol:v:195:y:2024:i:c:s0301421524004178
    DOI: 10.1016/j.enpol.2024.114397
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