Role of Energy Mix in Determining Climate Change Vulnerability in G7 Countries

Abstract

Anthropogenic activities are responsible for greenhouse gas emissions, causing extreme events like soil erosion, droughts, floods, forest fires and tornadoes. Fossil fuel consumption produces CO2, and trapping heat is the major reason for a rapid increase in global temperature, and electricity generation is responsible for 25% of greenhouse gas emissions. Fossil fuel consumption, CO2 emissions and their adverse impact have become the focus of efforts to mitigate climate change vulnerability. This study explores empirical determinants of vulnerability to climate change such as ecosystem, food, health and infrastructure. The sustainable use of energy is necessary for development, and a source of response to climate change. The present study focuses on renewable energy consumption to determine climate vulnerability in G7 countries between 1995 and 2019. The panel ARDL approach showed that the renewable to non-renewable energy mix showed a quadratic effect on vulnerability, whereby a minimum threshold of renewable energy is required to witness a reduction in food, health and infrastructure vulnerability. Other results indicate that trade openness and development expenditures reduce health vulnerability. Development expenditures also decrease ecosystem vulnerability, while trade openness increases it. However, both of these variables increase infrastructure vulnerability. Avoiding severe food and water crises requires investment to tackle climate change, conserve energy and water resources, reform global trade and food markets, and adapting and adopting climate-resilient responses to change.