How does energy transition in China amidst climate risk shocks influence residents’ welfare?

China regards energy transition as a significant measure to handle global climate change and foster the harmonious coexistence of human beings and nature. This article matches the urban energy transition index with China Family Panel Studies data to systematically examine and evaluate the impact of energy transition on residents’ happiness. The baseline results indicate that energy transition has improved residents’ happiness. Mechanism analysis found that energy transition did not significantly change residents’ inherent energy consumption habits, while reducing their perception of wealth gap and increasing their favorability towards the government. Heterogeneity results indicate that the positive impact of energy transition on residents’ happiness is more prominent in rural, coastal, and middle-aged and elderly populations. In addition, climate policy uncertainty and climate physical risks incentivize residents to achieve higher levels of happiness during the energy transition process. This article is of great significance for the rational arrangement of China’s energy transition process as well as achieving a win-win situation between energy transition and residents’ happiness.