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Does Geopolitical Risk Accelerate Climate Vulnerability? New Evidence from the European Green Deal

Author

Listed:
  • Dong, Kangyin

    (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China)

  • Yang, Senmiao

    (International Business Strategy Institute, University of International Business and Economics, Beijing 100029, China)

  • Wang, Jianda

    (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong, China)

  • Nepal, Rabindra

    (School of Business, Faculty of Business and Law, University of Wollongong, Australia)

  • Jamasb, Tooraj

    (Department of Economics, Copenhagen Business School)

Abstract

This paper studies 41 countries from 1995 to 2021 and uses the European Green Deal (EGD) as an example to explore the impact of policy intervention on the relationship between geopolitical risk and climate vulnerability. The main findings show that: (1) Geopolitical risk can exacerbate climate vulnerability, primarily manifested in negative impacts on food, water, health, and ecosystems. (2) Green transition and green investment can mitigate the adverse impact of geopolitical risk on climate vulnerability. (3) The positive effect of the EGD on the green transition and green investment can further mitigate climate vulnerability caused by geopolitical conflicts. This study provides practical approaches and references for policymakers to reduce the impact of geopolitical conflicts and enhance climate resilience.

Suggested Citation

  • Dong, Kangyin & Yang, Senmiao & Wang, Jianda & Nepal, Rabindra & Jamasb, Tooraj, 2024. "Does Geopolitical Risk Accelerate Climate Vulnerability? New Evidence from the European Green Deal," Working Papers 15-2024, Copenhagen Business School, Department of Economics.
    • Handle: RePEc:hhs:cbsnow:2024_015
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    More about this item

    Keywords

    The European Green Deal; Geopolitical risk; Climate vulnerability; Green transition; Green investment;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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