How Do Conflicts Affect Energy Security Risk? Evidence from Major Energy-Consuming Economies

Conflicts, whether internal or external, have the ability to increase energy security risks. Given this background, this paper investigates the impact of conflicts on energy security risks in the panel data of 40 major energy-consuming economies from Asia, America, Europe, and Africa by employing the Cross-sectionally Augmented Autoregressive Distributed Lag model from 1996 to 2021. The results show that the risks to long-term energy security fall with the rise in internal and external conflicts globally and in Asian, American, European, and African economies. However, all regions see decreased long-term energy security risk due to rising financial development. At the same time, national income mitigates energy security risks globally and in American countries. Technological innovation reduces long-term energy security risks globally in Asian, American, and European economies. Conversely, only gross domestic product and technological innovation cause the energy security risks to fall globally and in American economies.