Does Climate Legislation Reshape International Energy Trade Patterns?

Jun Yang, Xiaohan Zhu and Chao Feng

Emerging Markets Finance and Trade, 2025, vol. 61, issue 13, 4014-4028

Abstract: Like any other important aspect of the economy, international energy trade is easily affected by legislation. Yet, there is no research on the relationship between the two in the currently available literature. This paper examines the impact of climate legislation on the international energy trade patterns (IETP) for 88 importing and 65 exporting countries for the period 2001–2020 respectively, using complex network theory (CNT) and econometric model. The main findings indicate a significant influence of climate legislation on IETP. For exporting countries, climate legislation is detrimental to the increase in total fossil energy exports. But it helps exporting countries to establish trade relations with more core countries. For importing countries, climate legislation diversifies their energy importing channels and intensifies their relations with core countries. Moreover, strict legislation is more likely to increase a country’s influence in the international market. The study provides new perspectives for countries to develop strategic plans to stabilize their position in international energy trade.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:61:y:2025:i:13:p:4014-4028

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DOI: 10.1080/1540496X.2025.2501765

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