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Energy security analysis in a geopolitically volatile world: A causal study

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  • Khan, Khalid
  • Khurshid, Adnan
  • Cifuentes-Faura, Javier

Abstract

The study evaluates the causal nexus between geopolitical risk and energy security from 2004 to 2022. The results of the full sample causality indicate bidirectional causality between geopolitical risk and energy security. Moreover, the results suggest that geopolitical risk significantly impacts energy security in different sub-samples driven by the economic crisis, conflicts between nations, political instability, and terrorism, which have caused energy supply disruptions and increased energy insecurity. On the other hand, the result shows that energy security impacts geopolitical risk caused by economic instability and political unrest resulting from energy insecurity. Our model supports the results, demonstrating that geopolitical risk and energy security are closely intertwined and can have direct and indirect effects on each other. Energy security can be improved through energy diversification, investing in clean energy, building resilient energy infrastructure and promoting the peaceful resolution of conflicts.

Suggested Citation

  • Khan, Khalid & Khurshid, Adnan & Cifuentes-Faura, Javier, 2023. "Energy security analysis in a geopolitically volatile world: A causal study," Resources Policy, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:jrpoli:v:83:y:2023:i:c:s0301420723003847
    DOI: 10.1016/j.resourpol.2023.103673
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    Cited by:

    1. Khan, Khalid & Su, Chi Wei & Khurshid, Adnan & Qin, Meng, 2023. "Does energy security improve renewable energy? A geopolitical perspective," Energy, Elsevier, vol. 282(C).
    2. Halkos, George E. & Aslanidis, Panagiotis – Stavros C., 2023. "Sustainable energy development in an era of geopolitical multi-crisis. Applying productivity indices within institutional framework," Resources Policy, Elsevier, vol. 85(PB).
    3. Sikorska-Pastuszka, Magdalena & Papież, Monika, 2023. "Dynamic volatility connectedness in the European electricity market," Energy Economics, Elsevier, vol. 127(PA).
    4. Khurshid, Adnan & Chen, Yufeng & Rauf, Abdur & Khan, Khalid, 2023. "Critical metals in uncertainty: How Russia-Ukraine conflict drives their prices?," Resources Policy, Elsevier, vol. 85(PB).
    5. Khan, Khalid & Khurshid, Adnan & Cifuentes-Faura, Javier, 2023. "Investigating the relationship between geopolitical risks and economic security: Empirical evidence from central and Eastern European countries," Resources Policy, Elsevier, vol. 85(PA).

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    More about this item

    Keywords

    Geopolitical risk; Energy security; Supply disruption; Energy prices; Political instability;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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