THE SYNERGISTIC IMPACT OF GREEN FINANCE AND ENVIRONMENTAL REGULATIONS ON ENERGY RESILIENCE: EVIDENCE FROM OECD NATIONS

Abstract

This study examines the effects of green finance and environmental regulation on energy resilience across 38 OECD countries from 2001 to 2023, using World Bank panel data. Energy resilience is the capacity of energy systems to withstand, adapt to, and recover from economic, environmental, and geopolitical shocks while maintaining reliability and sustainability. Amid rising climate risks and market uncertainties, strengthening resilient energy systems has become essential. To ensure robust results, the study applies several econometric techniques, including variance inflation factor (VIF) analysis, fixed-effects models, and ordinary least squares (OLS) estimation. The findings show that both green finance and environmental regulation significantly enhance energy resilience. Green finance has a strong positive effect, underscoring the importance of sustainable investment in resilient energy development, while environmental regulations also support resilience outcomes. The study concludes that integrating green financial development with effective environmental policies can promote sustainability, innovation, and long-term energy resilience.