The Economics of Energy Security

Gilbert Metcalf

Annual Review of Resource Economics, 2014, vol. 6, issue 1, 155-174

Abstract: Energy security is the ability of households, businesses, and government to accommodate disruptions in supply in energy markets. This survey considers the economic dimensions of energy security and political and other noneconomic security concerns and discusses policy approaches that could enhance US energy security. A number of points emerge. First, energy security is enhanced by reducing consumption, not imports. A policy to eliminate oil imports, for example, will not enhance US energy security, whereas policies to reduce energy consumption can improve energy security. Second, energy security is distinct from considerations of energy externalities. Energy security taxes are appealing on political grounds but are more difficult to justify on economic grounds. Finally, the contrasting concerns over energy security between policy makers and economists are striking. The article notes some possible reasons for these differing views and suggests possible research opportunities in this area.

Keywords: oil dependence; energy policy; strategic petroleum reserve (search for similar items in EconPapers)
JEL-codes: F50 Q40 Q48 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (12)

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Working Paper: The Economics of Energy Security (2013)
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