Can ESG buffer the electricity demand effects of social globalization?
Electricity Journal, vol.39, no.3, 2026 (ESCI, Scopus)
- Publication Type: Article / Article
- Volume: 39 Issue: 3
- Publication Date: 2026
- Doi Number: 10.1016/j.tej.2026.107556
- Journal Name: Electricity Journal
- Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, ABI/INFORM, Compendex, INSPEC, Materials Science & Engineering Collection (ProQuest), Technology Collection (ProQuest)
- Keywords: Buffer effect, Developing countries, Electricity demand, ESG, Social globalization (SG)
- Anadolu University Affiliated: Yes
Abstract
Increased social globalization (SGLB) significantly impacts countries' energy consumption patterns. While the existing literature examines the relationship between SGLB and energy demand, it often fails to consider how this relationship is influenced by environmental, social, and governance (ESG) factors. This study examines the relationship between SGLB and electricity demand, accounting for the buffering effect of ESG performance. In this context, the MMQR, Panel Threshold Regression, and PLFC models were applied to 119 developing countries. The findings show that SGLB increases electricity demand in all quantiles and ESG regimes, while ESG performance acts as a buffer, weakening this effect at high ESG levels. The results for the control variables reveal that the effects of economic development, financial development, and natural resource income differ across ESG regimes. The findings indicate that the impacts of SGLB on energy demand should be managed through sustainable energy policies aligned with SDG 7 (Affordable and Clean Energy), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).