Assessing the energy efficiency gains of climate legislation: a global perspective

Climate legislation sets the tone for governance action on greenhouse gases globally, in which energy efficiency enhancement act as a critical role in mitigating climate change. To explore the impact of climate legislative on energy efficiency from an international perspective, this study collects a panel dataset covering 84 major countries’ climate-related legislative activity during the period of 2000–2021. By examining the impacts of both short- and long-term climate legislation on energy efficiency, we identify the positive effect of climate legislation on energy efficiency improvement. Such driving effect is particularly pronounced in countries with strong legal frameworks. Moreover, compared to executive orders issued by governments, legislative acts passed by parliaments are evaluated to be more effective in energy efficiency improvement. The heterogeneity tests also point to a stronger effect of climate legislation on high and middle-income countries than on low-income countries. Moreover, the impact of climate legislation on energy efficiency also varies significantly across global regions, particularly in EU/OECD countries. Effective implementation is crucial for climate legislation to have a positive impact on energy efficiency.Climate legislation addresses climate change challenges through the improvement of energy efficiency.Legislative acts are more effective than executive orders in enhancing energy efficiency, with synergies among various types of climate legislation being most effective.In accordance to national development characteristics, policymakers should develop forward-looking policies that not only aim to achieve long-term climate targets but are also designed for sustainable implementation.Governments should prioritize the enforceability of climate policies by implementing strong measures, such as specialized courts and periodic audits, to ensure the effectiveness of climate policies.