Abstract
The aim of this paper is to propose a new procedure for analysing the problem of the energy trilemma at country level. The three main issues for energy governance are energy security (ESI), climate change (EI) and energy poverty (EDI). Implementing policies to address them all simultaneously poses a major challenge for policymakers. This paper examines the impact of the India's diversity energy mix (DI) on the energy trilemma from 1990 to 2014. The quantitative study employs regression analysis individually (equation by equation) and simultaneously (all variables are considered jointly) using the Ordinary Least Square method and the Feasible Generalised Least Square method, respectively. The results confirm a strong link between all variables and prove that diversity is statistically significant for all variables. The results of the cross-effect analysis reveal interesting changes in the effects of DI compared to the individual analysis. When ESI and EI are considered the dependent variable, the sign of the DI change and its degree of significance decreases. The analysis also shows a positive effect of DI on EI, the significance of EI on ESI and a positive relationship between EI and EDI. The findings suggest that increasing the diversity of the energy mix is not always the best decision. Data are taken from the databases of the International Energy Agency, Emissions Database for Global Atmospheric Research and World Bank (DataBank).
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Abbreviations
- APERC:
-
Asian Pacific Energy Research Centre
- CI:
-
Composite indices
- CO2 :
-
Carbon dioxide
- DI:
-
Diversity index
- EDGAR:
-
Emissions Database for Global Atmospheric Research
- EDI:
-
Energy development index
- EI:
-
Emission index
- EII:
-
Emission intensity indicator
- EJM:
-
Energy justice metric
- EPI:
-
Energy poverty index
- ESI:
-
Energy security index
- GDP:
-
Gross domestic product
- GHG:
-
Greenhouse gases
- HHI:
-
Hirschman–Herfindahl index
- IEA:
-
International Energy Agency
- IPPC:
-
Intergovernmental Panel on Climate Change
- LIHC:
-
Low income high costs
- MEPI:
-
Multi-dimensional energy poverty index
- MIS:
-
Minimum income standard
- NEID:
-
Net energy import dependency
- PED:
-
Primary energy demand
- PES:
-
Primary energy sources
- StI:
-
Stirling diversity index
- SWI:
-
Shannon–Wiener index
- TPES:
-
Total primary energy sources
- U.S. EIA:
-
U.S. Energy International Agency
- WB:
-
World Bank
- WEC:
-
World Energy Council
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The authors acknowledge research funding received from UPV/EHU Econometrics Research Group (Basque Government Grant IT-1359-19) and Spanish Ministry of Economy, Industry and Competitiveness (project PID2019-105986 GB-C22).
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Bd-R: conceptualization, methodology, investigation, resources, data curation, writing—original draft, writing—review and editing, visualisation. AF-S: conceptualization, methodology, formal analysis, writing—review and editing, supervision, project administration. IMde A: conceptualization, resources, writing—review and editing.
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del-Río, B., Fernández-Sainz, A. & Martinez de Alegria, I. Assessing the energy trilemma through the diversity of the energy mix: the case of India. SN Bus Econ 2, 122 (2022). https://doi.org/10.1007/s43546-022-00300-8
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DOI: https://doi.org/10.1007/s43546-022-00300-8