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You’ll never walk alone: investigating the spillover effects in countries’ transition towards a low-carbon future

Author

Listed:
  • Yifan Shen
  • Yuxuan Wang
  • Yanan Chen
  • Xunpeng Shi

Abstract

Achieving a global transition to low-carbon energy systems is imperative for mitigating the mounting threats of climate change, yet progress remains sluggish. Drawing on panel data across 111 countries from 2000 to 2019, this study explores the spatial interdependence in energy transition. We show that economic driving factors, including economic developments, industry value added, and economic openness, not only shape a nation’s own energy transition but also exert influence on neighbouring countries. Notably, a nation’s climate legislation also demonstrates substantial spillover effects on the energy transition of its neighbours, with a more pronounced impact in the long term despite short-term effectiveness. These findings remain robust across diverse modelling methods, spatial weight matrices, and proxies for energy transitions. Our results emphasize the collaborative and interdependent nature of global initiatives to address climate change, stressing the need for a holistic approach that considers the synergies across national borders.

Suggested Citation

  • Yifan Shen & Yuxuan Wang & Yanan Chen & Xunpeng Shi, 2026. "You’ll never walk alone: investigating the spillover effects in countries’ transition towards a low-carbon future," Applied Economics, Taylor & Francis Journals, vol. 58(3), pages 483-500, January.
    • Handle: RePEc:taf:applec:v:58:y:2026:i:3:p:483-500
    DOI: 10.1080/00036846.2025.2453759
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