Main Article Content

Dr. Babita Srivastava


Energy security, oil, turmoil, demand, supply, sustainable, economic growth



To emphasize the importance of renewable and alternative energy, as nations become increasingly reliant on increasingly less available conventional energy sources. Simultaneously, the long-term and detrimental effects of such reliance is explored and quanitified so as to better justify investments into renewable, widely available, and less polluting energy sources.


Data is collected from a variety of publicly available sources and their relevance is explored through contrast and comparison. The graphs and data used primarily focus on energy and energy consumption such as fuel pricing and exporting as well as the rate of fuel exporting by various nations.


Based on the data analyzed, through the continuous use of fossil fuels, a country faces multiple challenges: depletion of fossil fuel reserves, global warming, environmental concerns, geopolitical and military conflicts and, of late, a continued and significant fuel price rise. The authors conclude these problems create an unsustainable situation and that without converting their energy sector to at least be in part less reliant on hydrocarbons and similar fuels and more reliant on more widely available and less polluting energy sources such as sunlight or geothermal energy a nation will inevitably face a catastrophic collapse of their energy sector.

Research Limitations/Implications:

Without cooperation of the governments of leading energy consuming nations in redeveloping their energy sector based on this or similar research, little of what has been explored can be widely applied. Consequently, the conclusions of this paper represent a single step in the process of redefining worldwide energy consumption rather than giving an explicit answer. Further research will be needed in order to most fully present an effective argument to the public sector, the private sector, and the common citizen that energy habits must be changed.


The conclusions reached are an essential part to understanding the wide reaching effects of the world’s current energy habits. With the ever increasing threat of global warming, emptying fuel reserves, and unnecessary polluting and waste habits of most nation’s energy sectors, this research, along with the cited data, can aid in the redirection of such energy habits before a point of no return. 


Download data is not yet available.
Abstract 201 | PDF Downloads 212


1. Agnolucci, P., 2009. The energy demand in the British and German industrial sectors: heterogeneity and common factors, Energy Economics, 31: 175-187.

2. Andrews, C.J. 2005. “Energy Security as a Rationale for Governmental Action.” Technology and Society Magazine, IEEE 24 (2): 16-25.

3. Bagen, B., and Billinton, R. 2008. Reliability Cost/Worth Associated with Wind Energy and Energy Storage Utilization in Electric Power Systems. In Probabilistic Methods Applied to Power Systems, 2008.PMAPS’08.Proceedings of the 10th International Conference on, 1-7.

4. Barry, B., 2004. Catherine Redgwell, Anita Ronne and Donald N. Zillman, Energy security: managing risk in a dynamic and regulatory environment, Oxford, Oxfor University Press, 5

5. Bentzen, J., Engsted, T., 1993. Short- and long-run elasticities in energy demand: a cointegration approach, Energy Economics, 15: 9-16.

6. Bohi, D. R., Michael A.T., and Margaret A. W. 1996. The Economics of Energy Security. Boston: Kluwer Academic Publishers.

7. Bohi, D.R., Toman, M.A., 1993. Energy security: Externalities and policies, Energy Policy, 21: 1093- 1109.

8. Bohi, D.R., Toman, M.A., 1996. The Economics of Energy Security. Kluwer Academic Publishers, Boston.

9. Bollen, J., Hers, S., van der Zwaan, B., 2010. An Integrated assessment of climate change, air pollution, and energy security policy, Energy Policy, 38: 4021-4030.

10. Burbidge, J., Harrison, A., 1984. Testing for the effects of oil-price rises using vector autoregressions, International Economic Review, 25: 459-484.

11. Correljé, A., van der Linde, C., 2006. Energy supply security and geopolitics: A European perspective, Energy Policy, 34: 532-543.

12. Dahl, C., 1994. A survey of energy demand elasticities for the developing world. Journal of Energy and Development, 17: 1-47.

13. Daniel Yergin, Ensuring Energy Security, in “Foreign Affairs”, 85, 2, 2006, p. 69

14. De Vita, G., Endresen, K., Hunt, L.C., 2006. An empirical analysis of energy demand in Namibia, Energy Policy, 34: 3447-3463.

15. Ferderer, J.P., 1996. Oil price volatility and the macroeconomy: A solution to the asymmetry puzzle, Journal of Macroeconomics, 18: 1-16.

16. Filippini, M., Hunt, L.C., 2011. Energy demand and energy efficiency in the OECD countries: a stochastic demand frontier approach, Energy Journal, 32: 59-80.

17. Finn, M.G., 2000. Perfect competition and the effects of energy price increases on economic activity, Journal of Money, Credit and Banking, 32: 400-416.

18. Froggatt, A., Levi, M., 2009. Climate and energy security policies and measures: synergies and conflicts, International Affaires, 85: 1129-1141.

19. Hederus, F., Azar, C., Johansson, D., 2010. Energy security policies in EU-25. The expected cost of oil supply disruptions, Energy Policy, 38: 1241-1250.

20. Galindo, L.M., 2005. Short- and long-run demand for energy in Mexico: a cointegration approach, Energy Policy, 33: 1179-1185.

21. Gisser, M., Goodwin, T.H., 1986. Crude oil and the macroeconomy: Tests of some popular notions, Journal of Money, Credit, and Banking, 18: 95-103.

22. Gupta, E., 2008. Oil vulnerability index of oil-importing countries, Energy Policy, 36: 1195-1211.

23. Hamilton, J.D., 1983. Oil and the macroeconomy since World War II, Journal of Political Economy, 91: 228-248.

24. Hamilton, J.D., 2003. What is an oil shock? Journal of Econometrics, 113: 363-398.

25. Hamilton, J.D., 2005. Oil and the macroeconomy, The new Palgrave Dictionary of Economics, MacMillan.

26. Henriques, I., Sadorsky, P., 2011. The effect of price volatility on strategic investment, Energy Economics, 33: 79-87.

27. Hunt, L.C., Judge, G., Ninomiya, Y., 2003. Underlying trends and seasonality in UK energy demand: a sectoral analysis, Energy Economics, 25: 93-118.

28. Hunt, L.C., Witt, R., 1995. An analysis of UK energy demand using multivariate cointegration, Surrey Energy Economics Discussion Paper Series, 86.



31. , page. 20

32. IEA, 2011a. The IEA Model of Short-term Energy Security (MOSES). Primary energy sources and secondary fuels, International Energy Agency Working Paper.

33. IEA, 2011b. Key World Energy Statistics 2011, International Energy Agency, Paris.

34. Iimi, A., 2010. Price elasticity of non-residential demand for energy in South Eastern Europe. Policy Research Working Paper, 5167, World Bank.

35. Keppler, J.H. 2007. International relations and security of energy supply: risks to continuity and geopolitical risks. Directorate General for External Policies of the EU.

36. Kilian, L., 2007. The economic effects of energy price shocks. CEPR Discussion Paper no. 6559. London, Centre for Economic Policy Research.

37. Kilian, L., 2008. The economic effects of energy price shocks, Journal of Economic Literature, 46: 871-909.

38. Kim, I.M., Loungani, P., 1992. The role of energy in real business cycle models, Journal of Monetary Economics, 29: 173-189.

39. Koopmans, C.C., Velde, D.W., 2001. Bridging the energy efficiency gap: using bottom-up information in a top-down energy demand model, Energy Economics, 23: 57-75.

40. Kruyt, B., van Vuuren, D.P., de Vries, H.J.M., Groenenberg, H., 2009. Indicators for energy security, Energy Policy, 37(6): 2166‐2181.

41. LaCommare, K.H., Eto, J.H., 2006. Cost of power interruptions to electricity consumers in the United States, Energy, 31: 1845-1855.

42. Le Coq, C., Paltseva, E., 2009. Measuring the security of external energy supply in the European Union, Energy Policy, 38: 4474-4481.

43. Marín-Quemada, J.M., Muñoz-Delgado, B., 2011. Affinity and rivalry: energy relations of the EU, International Journal of Energy Sector Management, 5: 11-38.

44. Markandya, A., Hunt, A., 2004. The externalities of energy insecurity. ExternE-Pol research project for the European Commission.

45. Markandya, A., Pemberton, M., 2010. Energy Security, energy modelling and uncertainty, Energy Policy, 38: 1609-1613.

46. Michael, N., Does the free market corrode moral character?, John Templeton Foundation

47. Pesaran, M.H., Smith, R., Akiyama, T., 1998. Energy Demand in Asian Economies, Oxford University Press.

48. J.E., Rich, R.W., 1997. Oil and the macroeconomy: A Markov State-Switching Approach, Journal of Money, Credit and Banking, 29: 193-213. Erratum 29 (November, Part 1): 555.

49. Rotemberg, J., Woodford, M., 1996. Imperfect competition and the effects of energy price increases on economic activity, Journal of Money, Credit and Banking, 28: 550-577.

50. Rothman, D.S., Hong, J.H., Mount, T.D., 1994. Estimating consumer energy demand using international data: Theoretical and policy implications, Energy Journal, 15: 67-88.

51. Roupas, C.V., Flamos, A., Psarras, J., 2009. Measurement of EU-27 oil vulnerability, International Journal of Energy Sector Management, 3: 203-218.

52. Sa’ad, S., 2011. Underlying energy demand trends in South Korean and Indonesian aggregate whole economy and residential sectors, Energy Policy, 39: 40-46.

53. Scheepers, M., Seebregts, A., de Jong, J., Maters, H., 2007. EU standards for energy security of supply. ECN/Clingendael International Energy Programme.

54. Targosz, R., Manson, J., 2007. Pan European LPQI Power Quality Survey, 19th International Conference on Electricity Distribution.

55. Turton, H., Barreto, L., 2006. Long-term security of energy supply and climate change, Energy Policy, 34: 2232-2250.

56. Van Benthem, A., Romani, M., 2009. Fuelling growth: what drives energy demand in developing countries? Energy Journal, 30: 91-114.

57. Van der Ploeg, F., Poelhekke, S., 2009. Volatility and the natural resource curse, Oxford Economic Papers, 61, 4:727-760.

58. Raymond, Webster, M., Paltsev, S., Reilly, J., 2008. Autonomous efficiency improvement or income elasticity of energy demand: does it matter? Energy Economics, 30: 2785-2798.