The dynamic role of energy security, energy equity and environmental sustainability in the dilemma of emission reduction and economic growth

Abstract

This study examines the relationship between energy security, energy equity, and environmental sustainability from the perspective of economic growth and CO2 emissions. For this purpose, this study utilizes the energy trilemma index (ETI) 2018 of the World Energy Council (WEC) to measure, evaluate and assess the energy efficiency of the top ten best-performing countries around the world. This study formulates an interval decision matrix to apply Principal Components Analysis (PCA) by reducing a large set into a small set of underlying variables with comprehensive information. Finally, this study uses the Fuzzy-TOPSIS method to determine the comprehensive ranks of all countries. This study shows that Denmark holds overall first rank in energy efficiency with a score of one in energy security, eleven in energy equity, and seventeen in environmental sustainability. In contrast, Germany has dominated all top ten performers by energy and environmental progress, which cannot be shirker within the UK's social progress concept. Thus, with ceteris paribus, a higher energy price will indicate a higher degree of scarcity of energy sources, encouraging working for cheaper and renewable alternatives and ultimately influencing the energy supply side. Carbon valuation can reduce greenhouse emissions by paying the extra dollar to the enterprise for less emission. It will lead to changing energy consumption structures and make it a cleaner choice for profit maximization.