Environmental regulations as a solution for energy security risk and energy gap: Evidence from highly energy intensive economies

The study investigates the impact of environmental regulations, specifically environmental taxes, on energy consumption, production gaps, and energy security risk in highly energy-intensive countries from 1995 to 2018. Using panel quantile regression analysis, the research finds that environmental regulations significantly decrease the energy consumption-production gap. Moreover, these regulations directly and indirectly mitigate energy security risks by promoting energy transition and increasing the contribution of renewable energy resources. The study concludes by recommending the implementation of an eco-regulatory policy framework to minimize energy-related risks, highlighting the potential of regulatory measures in achieving a balance between energy needs for development and environmental sustainability.