A systematic risk spillover perspective for modelling China's energy security: Firm-level evidence.

The concept of energy security has gained extensive attention in academic interest. We use firm-level data to evaluate China's energy security from 2013 to 2022. The newly devised energy security index reveals temporal variability, particularly during extreme events. Employing a risk diffusion network matrix, we uncover that risks encountered by energy firms can substantially compromise energy security through two key channels: corporate productivity and energy investment efficiency. Further causality tests reveal that disruptions like COVID-19 have intensified the link between China's energy security and geopolitical risks, suggesting a bidirectional causality. However, the results indicate a unidirectional predictive relationship flowing from global geopolitical risks to China's energy security. This study deepens theoretical insights into energy security and offers vital environmental management implications, underscoring the role of strategic risk management in sustaining energy resilience and efficiency amidst geopolitical and global challenges.