An Analysis of Energy Security Using the Partial Equilibrium Model: The Case of Pakistan

Abstract

Restricting energy imports and total primary energy supply are the two direct policy options used for the improvement of energy security. Restricting energy imports directly reduce energy import dependency that leads to diversification of energy resources and ultimately enhances energy security while total energy supply reduction affects the energy security through the diversification of efficient technology mix and energy resources supply mix. As energy is a vital element for sustained economic growth and development, therefore energy consumption is used as a basic indicator of people living standards. Due to technological and industrial development, the demand of energy in Pakistan is increasing more than the total primary energy supply; therefore, it is confronting the severe energy deficit today. So there should be a serious concern for the government about the energy security and should take enough actions for the development of indigenous alternative and renewable energy resources.