Assessing the impact of geopolitical risks on renewable energy transitions - an empirical study in the Asia-Pacific Region

Tran Thi Thu Huong () and Hoang Tham Quyen ()

International Journal of Innovative Research and Scientific Studies, 2025, vol. 8, issue 3, 3079-3088

Abstract: This study examines the impact of geopolitical risks (GPR) on renewable energy adoption in the Asia-Pacific region, focusing on how adverse geopolitical events influence the transition to renewable energy. Using panel regression models, including fixed effects, random effects, and Generalized Least Squares (GLS), the study analyzes data from a group of Asia-Pacific countries between 2000 and 2021. The findings reveal a positive impact of geopolitical risks on renewable energy consumption, with political instability and international conflicts encouraging countries to shift towards renewable energy sources to enhance energy security and reduce dependence on imported fossil fuels. Additionally, macroeconomic factors such as financial sector development, inflation, government expenditure, trade, and CO2 emissions also significantly affect renewable energy adoption. The study concludes that geopolitical risks, while posing challenges, offer opportunities for promoting renewable energy, and suggests that policymakers should focus on strategies to mitigate these risks, incentivize renewable energy investments, promote green finance, and foster technological innovation to reduce fossil fuel reliance. The research emphasizes the need for international cooperation and robust financial systems to support energy transitions in the context of geopolitical instability.

Keywords: Geopolitical risk; Renewable energy transition. (search for similar items in EconPapers)
Date: 2025
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