A Geopolitical Review of Definitions, Dimensions and Indicators of Energy Security

Abstract

Energy is an economic, ill-distributed and expensive good, subject to price fluctuations. Energy security arose as a problem of the oil crises of the 1970s, and it has become a matter of national security, although its definition depends on geographical location, natural resource endowment, international relations, political system, economic disposition, and ideological perceptions. Although there is no universally accepted definition of energy security, a succinct way to approach it is through the four As: availability, affordability, accessibility (to all), and acceptability (from a sustainability standpoint). Energy security may be measured by numerous indicators, with no single accepted methodology being ideal for all historical and geopolitical circumstances. Dimensions of the concept of energy security include: the environment, technology, demand side management, sociocultural and political factors, human security, geopolitical considerations, and the formulation of energy security policy. Alternatively, energy security may be considered to have five dimensions that may be broken down into 20 components, as follows: (a) availability, i.e. security of supply and production, dependency, and diversification; (b) affordability, i.e. price stability, access and equity, decentralization, and low prices; (c) technology development, i.e. innovation and research, safety and reliability, resilience, energy efficiency, and investment; (d) sustainability (environmental component), i.e. land use, water, climate change, and air pollution; and (e) regulation, i.e. governance, trade, competition, and knowledge of sound regulation. Energy security contains multiple components, including: geography, nuclear energy, economy, society, environment policy and political institutions. There are many energy security indicators and indexes that include different dimensions and attributes, such as the Herfindahl-Hirschmann Index, the Oil Vulnerability Index, the Vulnerability Index, the Aggregated Energy Security Performance Indicator, the US Energy Security Risk Index, the Energy Architecture Performance Index, and the Energy Trilemma (or Sustainability) Index. The paper is rounded up with a short discussion of the geopolitical role of energy security.