Indexing Economic Performance of Energy Security Towards Alternative Sustainable Strategies and Reforming Policies: The Evidence from Indian Rural Segment

Vivek Soni*, Pooja Sharma, Aarti Singh, A. P. Dash, P. K. Dey

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Energy security is a multifaceted concept predominantly assessed from a noneconomic perspective. However, the current research makes a unique contribution by focusing on the economic aspects of energy security, a relatively unexplored area. Numerous aspects simultaneously determine energy security; therefore, examining the influence of all factors that measure it is imperative. Energy availability, affordability, mainly the price of energy, and acceptability from an environmental sustainability perspective are important. The data from the World Bank and Energy Atlas is carefully selected for analysis based on energy-intensive and more economically contributing manufacturing units in terms of size, turnover, and geographical location. First, an index is computed based on factors such as net energy imports, access to electricity in rural areas, average fuel price, carbon dioxide emissions, and clean energy by deploying principal component analysis (PCA) to comprehend the interlinkages between select aspects. Secondly, a performance index (EPI) based on macroeconomic variables such as economic growth, external debt, current account balance, inflation, and investment in economic activities in manufacturing at the country level, using the Principal Component Analysis (PCA) technique. The Engel Granger Causality Test confirms unit-roots of one and a half decades of ESCI and EPI variables data. The study assesses that economic performance affects energy security while applying the PCA method and concludes that the value of ESCI has improved consistently over the selected period of 1990-2023. The scientific, theoretical, and practical implications are presented for energy security and economic policy. With a few limitations, future research directions suggest that economic policies should consider sustainable energy policy framing and draw appropriate strategies based on the causation between ESCI and ESI for a more energy-secure, sustainable, and prosperous future.
Original languageEnglish
Article number100136
JournalNext Research
Early online date11 Jan 2025
DOIs
Publication statusE-pub ahead of print - 11 Jan 2025

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