Does Geopolitics Impede or Facilitate the Global Transition to Renewable Energy?
摘要
Energy trade is crucial for global economic growth and geopolitics, with control of energy sources providing a geostrategic advantage. Geopolitics significantly influences renewable energy transition due to energy security concerns, trading conflicts, and competition over precious metals. The importance of renewable energy sources is underscored by the rise in fossil fuel prices, global economic expansion, and progress in technology. The objective of this investigation is to analyze the correlation between renewable energy and geopolitical risk through the application of the rolling window method. The results indicate a bidirectional causal relationship between green energy and geopolitical concerns in several subsamples. It shows how geopolitical issues, including those related to trade conflicts, energy security, and competition for rare earth metals, have significant effects on renewable energy. These factors act as stimuli for the transition toward renewable energy. The findings also show that geopolitical risks are significantly impacted by renewable energy. This is ascribed to technical advancements, growing global economic activity, and soaring fossil fuel prices. Renewable energy adoption is a useful strategy for fostering international peace and perhaps lowering global geopolitical risks, since it can accommodate developing entities in the global political framework. Thus, switching to renewable energy will help nations in terms of both energy access and security. Governments ought to engage the private sector by providing exclusive benefits for firms to invest in renewable energy projects.