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Measuring resilience to energy shocks

Author

Listed:
  • Molyneaux, Lynette
  • Brown, Colin
  • Foster, John
  • Wagner, Liam

Abstract

Measuring energy security or resilience in energy is, in the main, confined to indicators which are used for comparative purposes or to show trends rather than provide empirical evidence of resilience to unpredicted crises. In this paper, the electricity systems of the individual states within the United States of America are analysed for their response to the 1973-1982 and the 2003-2012 oil price shocks. Empirical evidence is sought for elements which are present in systems that experience reduced volatility from the energy shocks in the form of lower prices. Spare capacity is found to be a reliable indicator of reduced prices through both periods whilst renewable energy is found to be an indicator of reduced prices especially in 1973-1982.

Suggested Citation

  • Molyneaux, Lynette & Brown, Colin & Foster, John & Wagner, Liam, 2015. "Measuring resilience to energy shocks," MPRA Paper 64568, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:64568
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    References listed on IDEAS

    as
    1. Molyneaux, Lynette & Wagner, Liam & Froome, Craig & Foster, John, 2012. "Resilience and electricity systems: A comparative analysis," Energy Policy, Elsevier, vol. 47(C), pages 188-201.
    2. Kruyt, Bert & van Vuuren, D.P. & de Vries, H.J.M. & Groenenberg, H., 2009. "Indicators for energy security," Energy Policy, Elsevier, vol. 37(6), pages 2166-2181, June.
    3. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    4. William F. Sharpe, 1964. "Capital Asset Prices: A Theory Of Market Equilibrium Under Conditions Of Risk," Journal of Finance, American Finance Association, vol. 19(3), pages 425-442, September.
    5. Eugene F. Fama & Kenneth R. French, 2004. "The Capital Asset Pricing Model: Theory and Evidence," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 25-46, Summer.
    6. Tienyu Hwang & Simon Gao & Heather Owen, 2012. "A two‐pass model study of the CAPM: evidence from the UK stock market," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 29(2), pages 89-104, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ziyi Wang & Zengqiao Chen & Cuiping Ma & Ronald Wennersten & Qie Sun, 2022. "Nationwide Evaluation of Urban Energy System Resilience in China Using a Comprehensive Index Method," Sustainability, MDPI, vol. 14(4), pages 1-36, February.
    2. Foster, John & Wagner, Liam & Liebman, Ariel, 2017. "Economic and investment models for future grids: Final Report Project 3," MPRA Paper 78866, University Library of Munich, Germany.
    3. 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.
    4. Gheorghe H. Popescu & Violeta Sima & Elvira Nica & Ileana Georgiana Gheorghe, 2017. "Measuring Sustainable Competitiveness in Contemporary Economies—Insights from European Economy," Sustainability, MDPI, vol. 9(7), pages 1-26, July.

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    More about this item

    Keywords

    Resilience metrics; Energy Security; Electricity; Renewable Energy;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    NEP fields

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