Heterogeneous Impacts of Extreme Climate Risks on Global Energy Consumption Transition: An International Comparative Study

Abstract

In response to the uncertainty of extreme climate change, energy consumption structure has been actively adjusted globally. Based on panel data of 101 countries or regions from 2006 to 2019, a panel data model with fixed effects is used to analyze the heterogeneous impacts of extreme climate risks on global consumption transition. The results show that extreme climate change has promoted the transition of the energy structure, reduced the consumption of fossil energy, and increased the consumption of renewable energy. Meanwhile, there are heterogeneous impacts of extreme climate change risks on the energy transition when different countries suffering from extreme weather conditions. Areas with high levels of economic development and coastal countries are more inclined to respond to climate change through energy transition. It is further confirmed that, under the impact of business cycle and oil price fluctuations, economic recession and falling oil prices will strengthen the correlation between climate risk and the global energy transition, and governments need to pay more attention to the impact of climate risks.