The impact of political, financial, and economic risks on energy transition: the role of natural resource rents

Qiang Wang (), Xueting Li and Rongrong Li ()
Additional contact information
Qiang Wang: China University of Petroleum (East China)
Xueting Li: China University of Petroleum (East China)
Rongrong Li: China University of Petroleum (East China)

Palgrave Communications, 2025, vol. 12, issue 1, 1-16

Abstract: Abstract The global emphasis on energy transition arises from the recognition of fossil fuel reliance exacerbating environmental degradation. The transition to cleaner, renewable energy sources stands central in mitigating climate change and promoting sustainability. This paper explores the influence of country risks, particularly political, financial, and economic, on energy transition while considering the role of natural resource rents. Using data spanning 88 countries from 2006 to 2020, categorized by income levels, the analysis reveals distinct patterns. Low political and financial risks exhibit a negative correlation with energy transition, while low economic risks display a positive association. The study identifies threshold effects: higher resource rents worsen the negative impact of low political and financial risks and weaken the positive effects of low economic risk on energy transition. These relationships differ among countries with different income levels. These insights highlight the nuanced interplay between country risks, natural resource rents, and the trajectory of the energy transition, crucial for steering societies toward sustainable development pathways.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41599-025-04370-5 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-04370-5

Ordering information: This journal article can be ordered from
https://www.nature.com/palcomms/about

DOI: 10.1057/s41599-025-04370-5

Access Statistics for this article

More articles in Palgrave Communications from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().