Global climate policy effectiveness: A panel data analysis

Abstract

The global energy landscape is experiencing substantial transformations, and the energy policies of various countries are also evolving under the influence of economic development and climate change mitigation. The Policies and Measures Database of the International Energy Agency assembles over 7000 pieces of information on energy policy from around the world and classifies them into four categories based on their objectives: addressing climate change policy, renewable energy policy, energy efficiency policy, and building energy efficiency policy. This paper aims to analyze the status quo of global energy policy development from these four aspects and examine the effectiveness of both aggregate and individual instruments utilizing an econometric model based on panel data analysis. Moreover, this paper analyzes the energy policy paths of six leading countries and compares the effectiveness of their policies. The results revealed that global climate policy plays a significant role in reducing carbon emission, while the performance of policies varies among different countries. Based on these findings, this paper provides reference for policymakers to formulate energy policies aligned with global and domestic requirements.