Politická ekonomie X:X | DOI: 10.18267/j.polek.1512

How Does Energy Insecurity Hurt Green Growth? The Role of Financial Stability

Shi Yong Zheng, Jiaying Li, Wen Lu, Muhammad Hafeez, Razaz Waheeb Attar
Shi Yong Zheng, College of Digital Economics, Nanning University, Nanning, Guangxi, China; School of Business, Guilin University of Electronic Technology, Guilin, Guangxi, China
Jiaying Li, Division of Programs in Business School of Professional Studies, New York University New York, The United States of America
Wen Lu, Guilin University of Electronic Technology, Guilin, Guangxi, China
Muhammad Hafeez (corresponding author), Institute of Business Management Sciences, University of Agriculture Faisalabad, Pakistan; Advanced Research Centre, European University of Lefke, Lefke, Northern Cyprus, Turkey
Razaz Waheeb Attar, Management Department, College of Business Administration, Princess Nourah bint Abdulrahman University, Riyadh, Saudi Arabia

Climate change is one of the most disturbing issues for people all around the globe. Green growth has become the most viable solution for achieving economic goals without damaging environmental quality. Consequently, our main interest in this analysis is to examine how energy security risk and financial stability affect green growth in top carbon emitter economies. The CS-ARDL model is our selected estimation technique for examining the relationship between energy security risk, financial stability, and green growth. The long-run estimates reveal that higher energy security risk lowers green growth. In contrast, financial stability, technology, and human capital lead to a rise in green growth in the long run. The short-run estimates reveal the negative connection between energy security risk and green growth, while technology boosts green growth. These findings suggest policymakers should lower energy security risks and enhance financial stability to achieve green growth in top carbon emitter economies.

Keywords: Energy insecurity, green growth, financial stability, CS-ARDL

Received: October 10, 2024; Revised: March 28, 2025; Accepted: May 12, 2025; Prepublished online: December 16, 2025 

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