The Role of Human Capital in Strengthening Energy Mix-Climate Change Relation: A Study of Selected Low and High Vulnerable Economies

Abstract

Adaptive capacity of human is influenced by socio-economic factors such as skills, resources, technology and governance. Human-induced climate change is affecting all the nations of world. Adaptation measures are required to mitigate its effects. The aims of current research are: a) to identify the factors that can reduce vulnerability in low and high vulnerable countries, b) to find the factors that can moderate the effect of climate change in these countries, c) to compare the effect of these factors in high and low vulnerable economies. Panel Quantile Regression is used as an econometric technique to get the final results of the study. Sample is comprised of 40 low and high vulnerable countries, and data range from 1995-2020. Division of sample countries is based on the ranking of ND-GAINS. Data for present study is collected from ND-GAINS, WDI and PWT. Results exposed negative relationship between Human Capital and climate change vulnerability. Moreover, human capital along with energy-mix reduces climate change vulnerability in case of low and high vulnerable countries. Communication and education increase capacity-building skills and knowledge which help to reduce the risk associated with hazard and prepare us to deal with that hazard. Present study is conducted to highlight the importance of Socio-Economic factors in strengthening energy-mix climate change relation. This study will help the Policy makers and governments to cope with the adverse impact of climate change.