Skip to main content
Book cover

Modern Indices for International Economic Diplomacy pp 157–191Cite as

Palgrave Macmillan

International Energy Security Risk Index and Energy Diplomacy

  • 7 Accesses

Abstract

It has long been recognised that energy supply disruption due to geopolitical issues, forces of nature or transient economic events have far-reaching adverse economic and social effects on energy importing countries and severe effects on producing and transit countries due to the loss of revenues. Several international organisations, including International Energy Agency (IEA), USA Global Energy Institute (GEI), World Economic Forum (WEF), Australian Government (RET) and researchers are engaged in identifying and quantifying the risks indicators, metrics, and indexes. Their objective is to formulate risk mitigation strategies, policies and actions, including increasing the reliance on renewable energy, energy diplomacy, diversification, development of local resources, improving agreements, and economisation on energy use. The energy triangle consisting of secure access to energy, economic growth and environmental degradation will increasingly derive much of the work on energy security. This chapter looks at the energy security risks, risk evaluation metrics, indexes, proposed mitigation strategies and policies, and discusses two of the indexes used to evaluate the energy security risks. In this chapter, the energy security risk is described in similar terms to those used in risk management standards and practices for other applications, not addressed clearly in the energy security literature.

Keywords

  • Energy security
  • Energy security risk indexes
  • Energy diplomacy
  • Energy policy
  • Renewable energy transition (RET)
  • Environmental sustainability

This is a preview of subscription content, access via your institution.

Chapter
GBP   19.95
Price includes VAT (United Kingdom)
  • DOI: 10.1007/978-3-030-84535-3_6
  • Chapter length: 35 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
GBP   87.50
Price includes VAT (United Kingdom)
  • ISBN: 978-3-030-84535-3
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Hardcover Book
GBP   109.99
Price includes VAT (United Kingdom)
Learn about institutional subscriptions
Fig. 1

(Source World Bank. [2021]. Commodity Price Data. The Pink Sheet)

Fig. 2

(Source UK National Statistics, Department for Business, Energy and Industrial Strategy. [2019]. Energy Consumption in the UK [ECUK] 1970 to 2018, Consumption Tables, Chart C1)

Fig. 3

(Source Based on World Bank. [2020]. World Bank database. https://data.worldbank.org/indicator/EG.use.pcap.kg.OE?locations)

Fig. 4

(Source Jewell, J. [2011]. The IEA Model of Short-Term Energy Security [MOSES])

Fig. 5

(Source Global Energy Institute. [2020a, b]. International Index of Assessing Risk in a Global Energy Market, U.S. Chamber of Commerce, USA)

References

  • Abdullah, F. B., Iqbal, R., Hyder, S. I., & Jawaid, M. (2020). Energy security indicators for Pakistan: An integrated approach. Renewable and Sustainable Energy Reviews, 133, 110122.

    Google Scholar 

  • Australian Government, Department of Resources, Energy and Tourism (RET). (2011). National Energy Security Assessment of Australia. http://www.ret.gov.au

  • Bassim, M. (2015). Future expectations for energy in the Middle East and North Africa (MENA) region. European Centre for Energy & Resource Security, 47, 5–8.

    Google Scholar 

  • Boersma, T., & Johnson, C. (2018). US energy diplomacy (Columbia University, SIPA Center on Global Energy Policy Working Paper). https://energypolicy.columbia.edu/sites/default/files/pictures/CGEPUSEnergyDiplomacy218.pdf

  • British Petroleum. (2020). British petroleum energy outlook 2020.  BP Energy Economics.

    Google Scholar 

  • Charles, V., & Gherman, T. (2013). Achieving competitive advantage through big data: Strategic implications. Middle-East Journal of Scientific Research, 16(8), 1069–1074.

    Google Scholar 

  • Charles, V., & Gherman, T. (2018). Big data and ethnography: Together for the greater good. In A. Emrouznejad & V. Charles (Eds.), Big data for the greater good (pp. 19–34). Springer.

    Google Scholar 

  • Charles, V., Emrouznejad, A., & Gherman, T. (2021, Accepted/In press). Strategy formulation and service operations in the big data age: The essentialness of technology, people, and ethics. In A. Emrouznejad & V. Charles (Eds.), Big data for service operations management (pp. 1–30). Springer’s International Series in Studies in Big Data. Springer-Verlag.

    Google Scholar 

  • Charles, V., Gherman, T., & Emrouznejad, A. (2022, Accepted/In press - Nov 2021). The role of composite indices in international economic diplomacy. In V. Charles & A. Emrouznejad (Eds.), Modern indices for international economic diplomacy. Springer-Palgrave Macmillan.

    Google Scholar 

  • Charles, V., Gherman, T., & Paliza, J. C. (2019). Stakeholder involvement for public sector productivity enhancement: Strategic considerations. ICPE Public Enterprise Half-Yearly Journal, 24(1), 77–86.

    Google Scholar 

  • Charles, V., Tavana, M., & Gherman, T. (2015). The right to be forgotten—Is privacy sold out in the big data age? International Journal of Society Systems Science, 7(4), 283–298.

    CrossRef  Google Scholar 

  • Cherp, A., & Jewell, J. (2014). The concept of energy security: Beyond the four As. Energy Policy, 75, 415–421.

    CrossRef  Google Scholar 

  • de Sampaio Nunes, P. (2002). Towards a European strategy for the security of energy supply. VGB Powertech, 82.

    Google Scholar 

  • Deloitte. (2013). Securing tomorrow’s energy today: Policy and regulation, long term energy security. IEC. www.deloitte.com/in

  • Energy Charter Secretariat. (2015). International energy security: Common concept for energy producing, consuming and transit countries. ISBN 978-905948-054-4.

    Google Scholar 

  • Font, E. (2020). MOSES energy security ratings for Georgia. World Experience for Georgia (WEG). http://weg.ge/en/moses-energy-security-ratings-georgia-0

  • Global Energy Institute. (2018). International Index of Assessing Risk in a Global Energy Market, U.S. Chamber of Commerce, USA.

    Google Scholar 

  • Global Energy Institute. (2020a). Index of US Energy Security Risk, U.S. Chamber of Commerce, USA.

    Google Scholar 

  • Global Energy Institute. (2020b). International Index of Assessing Risk in a Global Energy Market, U.S. Chamber of Commerce, USA.

    Google Scholar 

  • International Energy Agency IEA. (2007). World Energy Outlook.

    Google Scholar 

  • International Energy Agency IEA. (2018). Energy Efficiency 2018 and World Energy Outlook 2018.

    Google Scholar 

  • International Energy Agency IEA. (2019). World Energy Outlook 2019. https://www.iea.org/reports/world-energy-outlook-2019

  • International Energy Agency IEA. (2020). World Energy Balances: Overview, Statistics Report. https://www.iea.org/reports/world-energy-balances-overview

  • IRENA. (2020). Global renewables outlook: Energy transformation 2050. International Renewable Energy Agency. ISBN 978-92-9260-238-3. www.irena.org/publications

  • Jansen, J., van Arkel, W., & Boots, M. (2004). Designing indicators of long term security. Netherlands Environmental Assessment Agency.

    Google Scholar 

  • Jewell, J. (2011). The IEA model of short-term energy security (MOSES) primary energy sources and secondary fuels (IEA Working Paper). https://www.iea.org/publications/freepublications/publication/moses_paper.pdf

  • Jewell, J., & Brutschin, E. (2019). The politics of energy security. In The Oxford handbook of energy politics.

    Google Scholar 

  • Kabel, T. S., & Bassim, M. (2019). Literature review of renewable energy policies and impacts. European Journal of Marketing and Economics, 2(2), 28–41.

    CrossRef  Google Scholar 

  • Kabel, T. S., & Bassim, M. (2020). Reasons for shifting and barriers to renewable energy: A literature review. International Journal of Energy Economics and Policy, 10(2), 89–94.

    CrossRef  Google Scholar 

  • Kester, J. (2018). The politics of energy security: Critical security studies. Routledge.

    CrossRef  Google Scholar 

  • Kocaslan, G. (2014). International energy security indicators and Turkey’s energy security risk score. International Journal of Energy Economics and Policy, 4(4), 735.

    Google Scholar 

  • Koyama, K., & Kutani, I. (2012). Developing an energy security index, study on the development of an energy security index and an assessment of energy security for East Asian countries (Chapter 2, pp. 7–47). Economic Research Institute for ASEAN and East Asia (ERIA).

    Google Scholar 

  • Leung, G. C., Cherp, A., Jewell, J., & Wei, Y. M. (2014). Securitization of energy supply chains in China. Applied Energy, 123, 316–326.

    CrossRef  Google Scholar 

  • Nathaniel, S. P., Murshed, M., & Bassim, M. (2021). The nexus between economic growth, energy use, international trade and ecological footprints: The role of environmental regulations in N11 countries. Energy, Ecology and Environment (pp. 1–17).

    Google Scholar 

  • Pahwa, M. S., & Chopra, A. S. (2013). Energy security models—A critical review and applicability in Indian context. International Journal of Research and Development—A Management Review (IJRDMR), 2(2), 17–20.

    Google Scholar 

  • Salman, D., & Bassim, M. (2019). Political stability, austerity measures, external imbalance, and debt impact on the Egyptian economy. In Impacts of political instability on economics in the MENA Region (pp. 74–102). IGI Global.

    Google Scholar 

  • Sovacool, B. K., & Mukherjee, I. (2011). Conceptualizing and measuring energy security: A synthesized approach. Energy, 36(8), 5343–5355.

    CrossRef  Google Scholar 

  • Šumskis, V., & Giedraitis, V. R. (2015). Economic implications of energy security in the short run. Ekonomika, 94(3), 119–138.

    CrossRef  Google Scholar 

  • Szulecki, K. (2018). The multiple faces of energy security: An introduction. In Energy security in Europe (pp. 1–29). Palgrave Macmillan.

    Google Scholar 

  • Szulecki, K. (2020). Securitization and state encroachment on the energy sector: Politics of exception in Poland’s energy governance. Energy Policy, 136, 111066.

    Google Scholar 

  • UK Department of Energy and Climate Change. (2012). Energy security strategy. Presented to Parliament by the Secretary of State for Energy and Climate Change by Command of Her Majesty.

    Google Scholar 

  • UK National Statistics, Department for Business, Energy and Industrial Strategy. (2019). Energy consumption in the UK (ECUK) 1970 to 2018, consumption tables, Chart C1.

    Google Scholar 

  • United Nations Development Programme, Human Development Report. (2020). The next frontier, Human Development and the Anthropocene.

    Google Scholar 

  • United Nations, Economic and Social Council. (2019). Progress towards the Sustainable Development Goals (SDGs). Report of the Secretary-General. https://undocs.org/E/2019/68

  • United Nations Population Division. (2019). World population prospects. https://population.un.org/wpp/Graphs/Probabilistic/POP/TOT/900

  • Vivoda, V. (2010). Evaluating energy security in the Asia-Pacific region: A novel methodological approach. Energy Policy, 38(9), 5258–5263.

    CrossRef  Google Scholar 

  • Wang, Q., & Zhou, K. (2017). A framework for evaluating global national energy security. Applied Energy, 188, 19–31.

    CrossRef  Google Scholar 

  • Winzer, C. (2012). Conceptualizing energy security. Energy Policy, 46, 36–48.

    CrossRef  Google Scholar 

  • World Bank. (2019). 2019 tracking SDG7: The energy progress report.

    Google Scholar 

  • World Bank. (2020). World Bank database. https://data.worldbank.org/indicator/EG.use.pcap.kg.OE?locations

  • World Bank. (2021). Commodity price data. The Pink Sheet.

    Google Scholar 

  • World Bank Data. (2021). Population total. https://data.worldbank.org/indicator/SP.POP.TOTL. Accessed April 2021.

  • World Economic Forum. (2017). Global Energy Architecture Performance Index Report 2017.

    Google Scholar 

  • World Economic Forum. (2021). Fostering effective energy transition. http://www3.weforum.org/docs/WEF_Fostering_Effective_Energy_Transition_2021.pdf. Accessed May 2021.

  • Yergin, D. (2006). Ensuring energy security. Foreign Affairs, 85(2), 69–82.

    CrossRef  Google Scholar 

Download references

Acknowledgements

The authors are thankful to the reviewers for their valuable comments on the previous version of this work.

Author information

Affiliations

  1. Department of Economics and International Studies, Faculty of Business, Humanities, and Social Sciences, The University of Buckingham, Buckingham, UK

    Mohga Bassim

  2. CENTRUM Católica Graduate Business School, Lima, Peru

    Vincent Charles

  3. Pontifical Catholic University of Peru, Lima, Peru

    Vincent Charles

Authors
  1. Mohga Bassim
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Vincent Charles
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Mohga Bassim .

Rights and permissions

Reprints and Permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Verify currency and authenticity via CrossMark

Cite this chapter

Bassim, M., Charles, V. (2022). International Energy Security Risk Index and Energy Diplomacy. In: Charles, V., Emrouznejad, A. (eds) Modern Indices for International Economic Diplomacy. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-84535-3_6

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-84535-3_6

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-84534-6

  • Online ISBN: 978-3-030-84535-3

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)