Measuring the Security of External Energy Supply in the European Union

Energy Policy, Vol. 37, No. 11, pp. 4474-4481

26 Pages Posted: 15 Sep 2009 Last revised: 10 Nov 2011

See all articles by Chloe Le Coq

Chloe Le Coq

SITE-Stockholm School of Economics

Elena Paltseva

Stockholm Institute of Transition Economics (SITE); New Economic School (NES)

Date Written: May 22, 2009

Abstract

The security of energy supply is one of the main objectives of EU energy policy. In this paper, we introduce an index designed to evaluate the short-term risks associated with the external supply of energy to the EU Member States. It combines measures of energy import diversification, political risks of the supplying country, risk associated with energy transit, and the economic impact of a supply disruption. We construct separate indexes for three primary energy types, oil, gas and coal, and demonstrate that Member States’ levels of supply risk exposure differ across energies. Most other studies of this kind provide aggregate indexes combining different types of energy. Our results suggest that an aggregate approach could be misleading, at least for discussions of the short-term response to risks. We discuss the implications of our findings for the common energy policy.

Keywords: Index, Security of supply, Supply risk

JEL Classification: Q4, Q48, C8

Suggested Citation

Le Coq, Chloe and Paltseva, Elena, Measuring the Security of External Energy Supply in the European Union (May 22, 2009). Energy Policy, Vol. 37, No. 11, pp. 4474-4481. Available at SSRN: https://ssrn.com/abstract=1473781

Chloe Le Coq (Contact Author)

SITE-Stockholm School of Economics ( email )

PO Box 6501
Stockholm, 11383
Sweden

HOME PAGE: http://www.hhs.se/SITE/Staff/Pages/ChloeLeCoq.aspxl

Elena Paltseva

Stockholm Institute of Transition Economics (SITE) ( email )

P.O. Box 6501
S-113 83 Stockholm, 11383
Sweden

New Economic School (NES) ( email )

100A Novaya Street
Moscow, Skolkovo 143026
Russia

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