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Evaluating energy security of resource-poor economies: A modified principle component analysis approach

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  • Li, Yingzhu
  • Shi, Xunpeng
  • Yao, Lixia

Abstract

This study proposes to aggregately measure energy security performance with the principal component analysis. In its application of the methodology to four resource-poor yet economically advanced island economies in East Asia—Singapore, South Korea, Japan, and Taiwan, this study establishes a novel framework to conceptualize energy security. The framework incorporates three dimensions: vulnerability, efficiency, and sustainability, three indicators being allocated to each dimension. The study finds that all the three dimensions are critical for the resource-poor economies but have different weights in each of them. An urgent task for these four economies is to implement energy efficiency and conservation measures. Liberalization of electricity sector can be a helpful tool to reduce energy consumption and increase efficiency. All of them have been committed to promoting renewable energy development, which shall be further expanded in these economies.

Suggested Citation

  • Li, Yingzhu & Shi, Xunpeng & Yao, Lixia, 2016. "Evaluating energy security of resource-poor economies: A modified principle component analysis approach," Energy Economics, Elsevier, vol. 58(C), pages 211-221.
  • Handle: RePEc:eee:eneeco:v:58:y:2016:i:c:p:211-221
    DOI: 10.1016/j.eneco.2016.07.001
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    More about this item

    Keywords

    Energy security; Principal component analysis; Resource-poor economy;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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