Good governance and energy security in OECD countries: The mediating role of environmental policy stringency

Abstract

Energy security has emerged as a central policy challenge as climate change intensifies alongside rising energy demand and increasing geopolitical uncertainty. For developed economies, ensuring secure energy systems while advancing environmental sustainability requires not only technological progress but also effective governance and regulatory frameworks. Despite this importance, empirical evidence on how governance quality influences energy security through environmental policy remains limited, and existing studies largely rely on traditional econometric approaches that struggle to capture non-linear dynamics. To address these gaps, this study examines the role of good governance in enhancing sustainable energy security in OECD countries, with a particular focus on the mediating role of environmental policy stringency. By applying both machine learning and econometric approaches, the study explored a positive and significant impact of good governance on energy security, highlighting that stronger governance enhances the resilience, efficiency, and sustainability of national energy systems. The study also found that environmental policy stringency acts as a key indirect channel through which governance quality enhances energy security. This highlights the importance of strong institutions and well-enforced environmental regulations for improving energy security in developed economies. From a policy perspective, these findings emphasize the value of integrating governance reforms with strong environmental policies. These insights offer practical guidance for policymakers aiming to strengthen energy resilience while promoting decarbonization and sustainable development goals.