The impact of the proportion of renewable energy consumption on geopolitical risks in the United States and the United Kingdom

Abstract

Renewable energy serves as an effective alternative to traditional fossil fuels, reducing reliance on energy imports from specific countries, thereby alleviating geopolitical risks and ensuring national energy security. The development and utilization of renewable energy have profound implications for the global energy consumption structure and geopolitical landscape. This paper utilizes time-series and panel data from 1990 to 2020 to examine the causal relationship between renewable energy consumption and geopolitical risks. Focusing primarily on the United States and the United Kingdom, a multivariate regression model was developed for empirical analysis, with a comparative analysis conducted against other Group of Seven (G7) member countries. Subsequent robustness checks were performed to further validate the model's robustness. Additionally, this study explores the role of military strength as a moderating variable in the relationship between renewable energy and geopolitics. Lastly, a vector autoregression model was constructed to analyze the dynamic relationships between renewable energy and related variables. The findings reveal that (1) consumption of clean renewable energies, such as solar, wind, and tidal energy, significantly reduces geopolitical risks in the United States and the United Kingdom, with differing empirical results for France, Canada, and Japan, interpreted according to their developmental contexts and (2) increased defense expenditure in the US and the UK significantly enhances the positive impact of renewable energy consumption on mitigating geopolitical risks. Utilizing renewable energy not only diversifies national energy options but also reduces reliance on fossil fuels and fosters international cooperation, thereby easing geopolitical tensions. This research enriches the literature on the relationship between renewable energy consumption and national energy security in key global nations and offers theoretical insights for the formulation and implementation of national energy development strategies in the new world development paradigm.