Energy security, energy consumption, and stringent climate policy in European Union countries: Is environmental tax effective?

According to the International Energy Agency, energy security means that energy sources are always available at an affordable price. However, the 2021 and 2022 energy crises and the current global situation raise concerns about energy availability and affordability. As countries, especially European countries, have started implementing stringent climate policies to prevent climate change and global warming, examining how these policies can mitigate climate change while ensuring energy security is critical. In so doing, we analyze the relationship between energy consumption, stringent climate policies, and energy security by focusing on the role of these policies in this relationship. We found that a 1 % increase in the environmental tax rate increases energy security by 0.01 %. In comparison, a 1 % increase in fossil fuel consumption reduces energy security by 0.05 %, and a 1 % increase in renewable energy reduces energy security by 0.07 %. We also found that stringent climate policies mitigate the negative impact of fossil fuel consumption on energy security in European countries, as a 1 % increase in the combination of environmental tax rate and fossil fuel consumption contributes to energy security by 0.01 %. Finally, the results show that stringent climate policies reduce the negative impact of renewable energy consumption on energy security from 0.07 % to 0.017 %. These findings highlight the importance of stringent climate policies in maintaining and strengthening energy security in European countries. • Environmental-related tax rates positively affect energy security. • Renewable energy and fossil fuel consumption negatively affect energy security. • Environmental-related taxes mitigate fossil fuel consumption detrimental impact on energy security.