Do energy risks drive the renewable transition in the Asia-Pacific? Insights from the method of moments quantile regression

Energy risks in the post-COVID-19 era pose significant challenges for human civilisation, particularly in the Asia-Pacific region, which remains highly vulnerable to energy crises. Although renewable energy is widely regarded as a strategic response, empirical research examining the nexus between energy risks and the renewable energy transition in this region remains limited. This study addresses the gap by investigating the impacts of energy uncertainty and insecurity on renewable energy transition across nine Asia-Pacific economies from 1991-2021. Employing the method of moments quantile regression, the findings reveal that both energy risks accelerate the transition, with stronger effects observed at more advanced stages. Furthermore, GDP per capita and foreign direct investment facilitate the transition, while green innovation unexpectedly hinders progress, reflecting potential underinvestment in environmental technologies. Causality tests confirm a unidirectional relationship from energy transition to uncertainty. The results underscore the urgency of enhancing renewable infrastructure, storage capacity, and foreign investment.