Some Economic Aspects of Energy Security

Authors:Xavier Labandeira, Baltasar Manzano

Abstract:

Energy security is becoming an increasingly important issue in the energy domain. However, from an economic point of view, many questions related to energy security are still unclear: from its definition and the costs associated to insecurity, to the design of policies intended to reduce it. In this paper we first illustrate why the security of energy supply is and will continue to be a major concern in the next few decades. We subsequently attempt, with a review of the limited literature on these matters, to provide an answer to some of the economic concepts associated to this issue and to the application of corrective public policies in the field.

Keywords: Energy Security, Energy Demand, Price Elasticity, Externalities, Energy Costs, Energy Security Policies

JEL classification: Q01, Q41, Q43, Q47, Q48