Adaptive capacity to climate change: Asymmetric effects of energy aid and governance quality

Adaptive capacity to climate change refers to the ability of systems to adjust to climate impacts, reduce their vulnerability, and take advantage of available opportunities. This approach is important for both tackling present climate difficulties and preparing for future hazards.This paper examines the unequal impact of the primary factors of adaptation capacity to climate change across 64 nations from 2002 to 2020. Employing a panel methodology with multiple fixed effects and quantile regressions, our findings show that energy aid exerts a more pronounced impact in countries exhibiting high adaptation deficits. Conversely, the quality of governance is crucial in contexts of high vulnerability. However, the interaction between these two factors indicates that their combination is not consistently beneficial, emphasizing the need for coordinated strategies tailored to local conditions. These findings highlight the necessity of targeted policies that integrate infrastructure investments, enhance governance, and prioritize resource distribution to the most vulnerable nations.