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The challenging economics of energy security: Ensuring energy benefits in support to sustainable development

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  • Blum, Helcio
  • Legey, Luiz F.L.

Abstract

Energy is a key-resource to economic development and is required to be available continuously and in adequate amounts. Also, it is expected to be affordable and environmentally friendly. Ensuring this is a challenge, yet strategic to maintain economies running under a sustainable pattern. Energy security is neither a new concept, nor a new concern. However, because of new issues, it requires a novel, broader approach. Such an approach should address both demand (security of supply) and supply (security of demand) sides, as well as take into account energy scarcity situations and surplus opportunities. In addition, it should allow for both private (markets) and public (policies and regulations) initiatives. This paper presents a theoretical and practical basis for the economics of energy security. Energy security is defined, in this context, as the ability of an economy to provide sufficient, affordable and environmentally sustainable energy services so as to maintain a maximum welfare state, even when issues would press it otherwise. We introduce the notion of energy security gap to represent the economy's failure to show such ability. Additionally, we also propose a framework to support the evaluation, planning and implementation of energy security in an economy. This framework relies on the concepts of resilience, adaptability and transformability (Walker et al, 2004) to prescribe indicators to assess the energy security of an economy. Furthermore, it proposes mechanisms to enhance energy security, as well as a continuous process to increasingly achieve this.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:eneeco:v:34:y:2012:i:6:p:1982-1989 DOI: 10.1016/j.eneco.2012.08.013
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    Cited by:

    1. Johansson, Bengt, 2013. "Security aspects of future renewable energy systems–A short overview," Energy, Elsevier, vol. 61(C), pages 598-605.
    2. Zhang, Hai-Ying & Ji, Qiang & Fan, Ying, 2013. "An evaluation framework for oil import security based on the supply chain with a case study focused on China," Energy Economics, Elsevier, pages 87-95.
    3. repec:eee:energy:v:126:y:2017:i:c:p:124-131 is not listed on IDEAS
    4. Dong, Cong & Huang, Guohe & Cai, Yanpeng & Li, Wei & Cheng, Guanhui, 2014. "Fuzzy interval programming for energy and environmental systems management under constraint-violation and energy-substitution effects: A case study for the City of Beijing," Energy Economics, Elsevier, pages 375-394.
    5. repec:eco:journ2:2017-05-10 is not listed on IDEAS
    6. Radovanović, Mirjana & Filipović, Sanja & Pavlović, Dejan, 2017. "Energy security measurement – A sustainable approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P2), pages 1020-1032.
    7. Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi, 2016. "Optimizing plant size in the planning of renewable energy portfolios," Letters in Spatial and Resource Sciences, Springer, pages 169-187.
    8. Månsson, André & Johansson, Bengt & Nilsson, Lars J., 2014. "Assessing energy security: An overview of commonly used methodologies," Energy, Elsevier, vol. 73(C), pages 1-14.
    9. Sharifi, Ayyoob & Yamagata, Yoshiki, 2016. "Principles and criteria for assessing urban energy resilience: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1654-1677.
    10. Narula, Kapil & Reddy, B. Sudhakara, 2016. "A SES (sustainable energy security) index for developing countries," Energy, Elsevier, vol. 94(C), pages 326-343.
    11. Gouveia, João Pedro & Dias, Luís & Martins, Inês & Seixas, Júlia, 2014. "Effects of renewables penetration on the security of Portuguese electricity supply," Applied Energy, Elsevier, pages 438-447.
    12. Kazagic, Anes & Merzic, Ajla & Redzic, Elma & Music, Mustafa, 2014. "Power utility generation portfolio optimization as function of specific RES and decarbonisation targets – EPBiH case study," Applied Energy, Elsevier, pages 694-703.
    13. García-Gusano, Diego & Iribarren, Diego & Garraín, Daniel, 2017. "Prospective analysis of energy security: A practical life-cycle approach focused on renewable power generation and oriented towards policy-makers," Applied Energy, Elsevier, pages 891-901.

    More about this item

    Keywords

    Energy security; Energy policies; Sustainable development;

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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