Energy transition as a solution for energy security risk: Empirical evidence from BRI countries

This study investigates the effect of energy transition on energy security risk for 41 BRI during 1995–2018 using second generation panel econometric techniques. First this study computes total energy share from renewable resources and then analyses their effects on energy security risk. According to the results of augmented mean group (AMG) and common correlated effect mean group (CCEMG) estimates, renewable resources significantly decrease energy security risk. Energy transition as variable of interest significantly decreases energy security risk with renewable energy resources. This study recommends that a structural change in the form of energy transition reduce energy security risk for selected BRI countries. This is because non-renewable resources although fulfil domestic energy requirements but degrades the environment and still there exists energy security in the form of energy demand and supply, affordability, cleanability sustainability and availability. Corresponding to these findings, BRI countries must implement policies to invest more in renewable energy resources and less utilization of non-renewable resources to prevent themselves from energy security risk in the long run.