TY - JOUR
T1 - Indexing Economic Performance of Energy Security Towards Alternative Sustainable Strategies and Reforming Policies: The Evidence from Indian Rural Segment
AU - Soni, Vivek
AU - Sharma, Pooja
AU - Singh, Aarti
AU - Dash, A. P.
AU - Dey, P. K.
PY - 2025/1/11
Y1 - 2025/1/11
N2 - 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.
AB - 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.
UR - https://www.sciencedirect.com/science/article/abs/pii/S3050475925000077
U2 - 10.1016/j.nexres.2025.100136
DO - 10.1016/j.nexres.2025.100136
M3 - Article
SN - 3050-4759
JO - Next Research
JF - Next Research
M1 - 100136
ER -