The interaction of public–private partnership investment in energy and geopolitical risk in influencing carbon dioxide emissions in E7 countries

The recent geopolitical tensions are delaying government efforts to fight environmental degradation. This paper aims to examine how public–private partnership investment in energy reduces carbon emissions in E7 countries, a group that has witnessed rapid carbon emissions and frequent geopolitical risks. Utilizing the panel data of E7 countries from 1995 to 2019 and the recently developed panel quantile regression method, the paper reveals that while public–private partnership investment in energy serves as a solution for mitigating carbon emissions, geopolitical risk significantly escalates carbon emissions. In addition, geopolitical instability constraints the beneficial impact of public–private partnership investment in energy on carbon emissions reduction targets. The study also validates the existence of the Environmental Kuznets Curve hypothesis as well as the favorable roles of renewable energy, urbanization, and international trade in curbing carbon emissions. Based on the findings, the E7 governments are recommended to either ease the level of geopolitical insecurity or improve the strategies that a country responds to the geopolitical tension and manages its public–private partnership investment in energy.