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Measuring Energy Security – A Conceptual Note

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  • Manuel Frondel

    ()

  • Christoph M. Schmidt

Abstract

Along with the oil price, concerns about the security of energy supply have soared once again in recent years.Yet, more than 30 years after the OPEC oil embargo in 1973, energy security still remains a diffuse concept. This paper conceives a statistical indicator that aims at characterizing the energy supply risk of nations that are heavily dependent on energy imports. Our indicator condenses the bulk of empirical information on the imports of fossil fuels originating from a multitude of export countries as well as data on the indigenous contribution to the domestic energy supply into a single parameter. Applying the proposed concept to empirical energy data on Germany and the U.S. (1980–2004), we find that there is a large gap in the energy supply risks between both countries, with Germany suffering much more from a tensed energy supply situation today than the U.S.

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File URL: http://repec.rwi-essen.de/files/REP_08_052.pdf
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Bibliographic Info

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0052.

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Length: 21 pages
Date of creation: Jul 2008
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Handle: RePEc:rwi:repape:0052

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Keywords: Herfindahl index; energy supply risk indicator;

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References

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  1. Adelman, M A, 1990. "Mineral Depletion, with Special Reference to Petroleum," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 1-10, February.
  2. Manuel Frondel & Rainer Kambeck & Christoph M. Schmidt, 2006. "Hard Coal Subsidies: A Never-Ending Story?," RWI Discussion Papers 0053, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
  3. Richard L. Gordon, 1967. "A Reinterpretation of the Pure Theory of Exhaustion," Journal of Political Economy, University of Chicago Press, vol. 75, pages 274.
  4. Manuel Frondel & Christoph M. Schmidt, 2006. "The Empirical Assessment of Technology Differences: Comparing the Comparable," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 186-192, February.
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Cited by:
  1. Blum, Helcio & Legey, Luiz F.L., 2012. "The challenging economics of energy security: Ensuring energy benefits in support to sustainable development," Energy Economics, Elsevier, vol. 34(6), pages 1982-1989.
  2. Manuel Frondel & Nolan Ritter & Christoph M. Schmidt & Colin Vance, 2009. "Economic Impacts from the Promotion of Renewable Energy Technologies - The German Experience," Ruhr Economic Papers 0156, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. Löschel, Andreas & Moslener, Ulf & Rübbelke, Dirk T.G., 2010. "Indicators of energy security in industrialised countries," Energy Policy, Elsevier, vol. 38(4), pages 1665-1671, April.
  4. Hubbard, L.J. & Hubbard, Carmen, 2013. "Food security in the United Kingdom: External supply risks," Food Policy, Elsevier, vol. 43(C), pages 142-147.
  5. Manuel Frondel & Nolan Ritter & Christoph M. Schmidt, 2009. "Measuring Energy Supply Risks: A G7 Ranking," Ruhr Economic Papers 0104, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  6. Peter Grösche, 2009. "Measuring residential energy efficiency improvements with DEA," Journal of Productivity Analysis, Springer, vol. 31(2), pages 87-94, April.
  7. Luise Roepke & Jana Lippelt, 2011. "Kurz zum Klima: Sichere und umweltfreundliche Stromversorgung - ein Zielkonflikt?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(02), pages 32-34, 02.

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