Climate change, energy security risk, and clean energy investment

We examine the impact of climate change on energy security risk and explore the role of clean energy investment in reducing this impact. By exploiting a recently developed historical energy security risk dataset alongside climate change and clean energy investment datasets, we demonstrate that climate change enhances energy security risk. Additionally, we show that investment in clean energy can reduce the impact of climate change on energy security risk. This mitigating effect of clean energy investment is more pronounced in countries with slower population growth, the capacity to invest in robust energy infrastructures, and lower corruption practices. To optimize the role of clean energy investment in reducing the impact of climate change, it is crucial to establish robust energy systems, control population growth, maintain higher environmental standards, and limit corruption practices, among other measures.