A puzzle on environmental quality and energy security.

ABSTRACT

i) This study examines the determinants of environmental quality. It is not possible to fully analyze the complex network that emerges from the set of interactions of these determinants, both with each other and with environmental security. Indeed, a number of variables and relationships hidden in the background of the puzzle such as 'game theoretical interactions between economies on energy security', characterize this network. However, this study, which includes energy security and environmental quality simultaneously, may open the door to revealing the key patterns of the current network. ii) This study, which investigates the network between environmental problems and energy security, provides empirical evidence that these two variables may well evolve by positively affecting each other under some conditions. iii) Using the current and sophisticated econometric methods such as CDw + based on Juodis and Reese (2022) test and CS-ARDL Model, over a panel of top 20 energy-using countries in the period 1980-2018, the empirical analysis of the article shows that an increase in energy security risk positively affects environmental quality in aggregate by motivating increased energy efficiency, triggering environmental awareness and regulations, and stimulating research and development activities for clean energy etc. Technologies. Therefore, this study concludes that potential policies and reforms, including reducing fossil fuel consumption, increasing energy efficiency in distribution and consumption, encouraging investments in clean energy are of key importance in making energy security sustainable in the long term by increasing environmental quality.