IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v24y2013icp9-20.html
   My bibliography  Save this article

Energy security and improvements in the function of diversity indices—Taiwan energy supply structure case study

Author

Listed:
  • Chuang, Ming Chih
  • Ma, Hwong Wen

Abstract

Facing the risk and uncertainty inherent in social and economic development, many countries have adopted an energy supply diversification strategy in their energy security policy to control the energy import risk and cost to ensure that sufficient energy can be obtained at an affordable price level. Diversification helps the energy system respond to external changes and shocks. Diversification can also lessen the vulnerability of a single energy source to supply shocks and the market power of various energy supply sources. This study develops the “diversity reliability index” and “co-vary diversity reliability index” based on the Hirschman–Herfindahl and Shannon–Wiener indices, investigates the contribution of different energy sources to the energy system, and analyzes the covariance between various energies and their impacts on energy security to determine the impact of energy diversity in reducing the risk of energy supply shortages and cost fluctuations.

Suggested Citation

  • Chuang, Ming Chih & Ma, Hwong Wen, 2013. "Energy security and improvements in the function of diversity indices—Taiwan energy supply structure case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 24(C), pages 9-20.
    • Handle: RePEc:eee:rensus:v:24:y:2013:i:c:p:9-20
    DOI: 10.1016/j.rser.2013.03.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032113001809
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2013.03.021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bang, Guri, 2010. "Energy security and climate change concerns: Triggers for energy policy change in the United States?," Energy Policy, Elsevier, vol. 38(4), pages 1645-1653, April.
    2. Cohen, Gail & Joutz, Frederick & Loungani, Prakash, 2011. "Measuring energy security: Trends in the diversification of oil and natural gas supplies," Energy Policy, Elsevier, vol. 39(9), pages 4860-4869, September.
    3. Grubb, Michael & Butler, Lucy & Twomey, Paul, 2006. "Diversity and security in UK electricity generation: The influence of low-carbon objectives," Energy Policy, Elsevier, vol. 34(18), pages 4050-4062, December.
    4. Bhattacharyya, Subhes C., 2009. "Fossil-fuel dependence and vulnerability of electricity generation: Case of selected European countries," Energy Policy, Elsevier, vol. 37(6), pages 2411-2420, June.
    5. Winzer, Christian, 2012. "Conceptualizing energy security," Energy Policy, Elsevier, vol. 46(C), pages 36-48.
    6. Löschel, Andreas & Moslener, Ulf & Rübbelke, Dirk T.G., 2010. "Indicators of energy security in industrialised countries," Energy Policy, Elsevier, vol. 38(4), pages 1665-1671, April.
    7. Lefèvre, Nicolas, 2010. "Measuring the energy security implications of fossil fuel resource concentration," Energy Policy, Elsevier, vol. 38(4), pages 1635-1644, April.
    8. Shukla, Umesh Kumar & Thampy, Ashok, 2011. "Analysis of competition and market power in the wholesale electricity market in India," Energy Policy, Elsevier, vol. 39(5), pages 2699-2710, May.
    9. Roques, Fabien A. & Newbery, David M. & Nuttall, William J., 2008. "Fuel mix diversification incentives in liberalized electricity markets: A Mean-Variance Portfolio theory approach," Energy Economics, Elsevier, vol. 30(4), pages 1831-1849, July.
    10. Kruyt, Bert & van Vuuren, D.P. & de Vries, H.J.M. & Groenenberg, H., 2009. "Indicators for energy security," Energy Policy, Elsevier, vol. 37(6), pages 2166-2181, June.
    11. Bhattacharya, Anindya & Kojima, Satoshi, 2012. "Power sector investment risk and renewable energy: A Japanese case study using portfolio risk optimization method," Energy Policy, Elsevier, vol. 40(C), pages 69-80.
    12. Sovacool, Benjamin K. & Mukherjee, Ishani & Drupady, Ira Martina & D’Agostino, Anthony L., 2011. "Evaluating energy security performance from 1990 to 2010 for eighteen countries," Energy, Elsevier, vol. 36(10), pages 5846-5853.
    13. Chalvatzis, Konstantinos J. & Hooper, Elizabeth, 2009. "Energy security vs. climate change: Theoretical framework development and experience in selected EU electricity markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2703-2709, December.
    14. van Vliet, Oscar & Krey, Volker & McCollum, David & Pachauri, Shonali & Nagai, Yu & Rao, Shilpa & Riahi, Keywan, 2012. "Synergies in the Asian energy system: Climate change, energy security, energy access and air pollution," Energy Economics, Elsevier, vol. 34(S3), pages 470-480.
    15. Pode, Ramchandra, 2010. "Addressing India's energy security and options for decreasing energy dependency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 3014-3022, December.
    16. Asif, M. & Muneer, T., 2007. "Energy supply, its demand and security issues for developed and emerging economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(7), pages 1388-1413, September.
    17. Costantini, Valeria & Gracceva, Francesco & Markandya, Anil & Vicini, Giorgio, 2007. "Security of energy supply: Comparing scenarios from a European perspective," Energy Policy, Elsevier, vol. 35(1), pages 210-226, January.
    18. Smith, Fraser, 1996. "Biological diversity, ecosystem stability and economic development," Ecological Economics, Elsevier, vol. 16(3), pages 191-203, March.
    19. Jansen, Jaap C. & Seebregts, Ad J., 2010. "Long-term energy services security: What is it and how can it be measured and valued?," Energy Policy, Elsevier, vol. 38(4), pages 1654-1664, April.
    20. Barry Naughten, 2008. "Asia's rising complex energy interdependence," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 29(4), pages 400-433.
    21. Stirling, Andy, 2010. "Multicriteria diversity analysis: A novel heuristic framework for appraising energy portfolios," Energy Policy, Elsevier, vol. 38(4), pages 1622-1634, April.
    22. Catherine Hardy & Thomas E. Graedel, 2002. "Industrial Ecosystems as Food Webs," Journal of Industrial Ecology, Yale University, vol. 6(1), pages 29-38, January.
    23. Templet, Paul H., 1999. "Energy, diversity and development in economic systems; an empirical analysis," Ecological Economics, Elsevier, vol. 30(2), pages 223-233, August.
    24. Juan Delgado & Hans W. Friederiszick & Lars-Hendrik Röller, . "Energy- choices for Europe," Blueprints, Bruegel, number 14, June.
    25. Turton, Hal & Barreto, Leonardo, 2006. "Long-term security of energy supply and climate change," Energy Policy, Elsevier, vol. 34(15), pages 2232-2250, October.
    26. Vivoda, Vlado, 2010. "Evaluating energy security in the Asia-Pacific region: A novel methodological approach," Energy Policy, Elsevier, vol. 38(9), pages 5258-5263, September.
    27. Asgari, Mohammad Hossein & Monsef, Hassan, 2010. "Market power analysis for the Iranian electricity market," Energy Policy, Elsevier, vol. 38(10), pages 5582-5599, October.
    28. Grant Allan & Igor Eromenko & Peter McGregor & Kim Swales, 2010. "The regional electricity generation mix in Scotland: A portfolio selection approach," Working Papers 1010, University of Strathclyde Business School, Department of Economics.
    29. Korhonen, Jouni & Snakin, Juha-Pekka, 2005. "Analysing the evolution of industrial ecosystems: concepts and application," Ecological Economics, Elsevier, vol. 52(2), pages 169-186, January.
    30. Stirling, Andrew, 1994. "Diversity and ignorance in electricity supply investment : Addressing the solution rather than the problem," Energy Policy, Elsevier, vol. 22(3), pages 195-216, March.
    31. Sovacool, Benjamin K. & Mukherjee, Ishani, 2011. "Conceptualizing and measuring energy security: A synthesized approach," Energy, Elsevier, vol. 36(8), pages 5343-5355.
    32. Bishop, Justin D.K. & Amaratunga, Gehan A.J. & Rodriguez, Cuauhtemoc, 2008. "Using strong sustainability to optimize electricity generation fuel mixes," Energy Policy, Elsevier, vol. 36(3), pages 971-980, March.
    33. Gotham, Douglas & Muthuraman, Kumar & Preckel, Paul & Rardin, Ronald & Ruangpattana, Suriya, 2009. "A load factor based mean-variance analysis for fuel diversification," Energy Economics, Elsevier, vol. 31(2), pages 249-256, March.
    34. Jun, Eunju & Kim, Wonjoon & Chang, Soon Heung, 2009. "The analysis of security cost for different energy sources," Applied Energy, Elsevier, vol. 86(10), pages 1894-1901, October.
    35. Skea, Jim, 2010. "Valuing diversity in energy supply," Energy Policy, Elsevier, vol. 38(7), pages 3608-3621, July.
    36. Encaoua, David & Jacquemin, Alexis, 1980. "Degree of Monopoly, Indices of Concentration and Threat of Entry," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 87-105, February.
    37. repec:reg:rpubli:450 is not listed on IDEAS
    38. Allan, Grant & Eromenko, Igor & McGregor, Peter & Swales, Kim, 2011. "The regional electricity generation mix in Scotland: A portfolio selection approach incorporating marine technologies," Energy Policy, Elsevier, vol. 39(1), pages 6-22, January.
    39. von Hippel, David & Suzuki, Tatsujiro & Williams, James H. & Savage, Timothy & Hayes, Peter, 2011. "Energy security and sustainability in Northeast Asia," Energy Policy, Elsevier, vol. 39(11), pages 6719-6730.
    40. Kavouridis, K. & Koukouzas, N., 2008. "Coal and sustainable energy supply challenges and barriers," Energy Policy, Elsevier, vol. 36(2), pages 693-703, February.
    41. Rammel, Christian & van den Bergh, Jeroen C. J. M., 2003. "Evolutionary policies for sustainable development: adaptive flexibility and risk minimising," Ecological Economics, Elsevier, vol. 47(2-3), pages 121-133, December.
    42. Zhu, Lei & Fan, Ying, 2010. "Optimization of China's generating portfolio and policy implications based on portfolio theory," Energy, Elsevier, vol. 35(3), pages 1391-1402.
    43. Li, Xianguo, 2005. "Diversification and localization of energy systems for sustainable development and energy security," Energy Policy, Elsevier, vol. 33(17), pages 2237-2243, November.
    44. Vivoda, Vlado, 2009. "Diversification of oil import sources and energy security: A key strategy or an elusive objective?," Energy Policy, Elsevier, vol. 37(11), pages 4615-4623, November.
    45. Von Hippel, David & Savage, Timothy & Hayes, Peter, 2011. "Introduction to the Asian Energy Security project: Project organization and methodologies," Energy Policy, Elsevier, vol. 39(11), pages 6712-6718.
    46. Le Coq, Chloé & Paltseva, Elena, 2009. "Measuring the security of external energy supply in the European Union," Energy Policy, Elsevier, vol. 37(11), pages 4474-4481, November.
    47. Mignone, Bryan K., 2007. "The national security dividend of global carbon mitigation," Energy Policy, Elsevier, vol. 35(11), pages 5403-5410, November.
    48. Huntington, Hillard G. & Brown, Stephen P. A., 2004. "Energy security and global climate change mitigation," Energy Policy, Elsevier, vol. 32(6), pages 715-718, April.
    49. Gupta, Eshita, 2008. "Oil vulnerability index of oil-importing countries," Energy Policy, Elsevier, vol. 36(3), pages 1195-1211, March.
    50. Xia, X.H. & Huang, G.T. & Chen, G.Q. & Zhang, Bo & Chen, Z.M. & Yang, Q., 2011. "Energy security, efficiency and carbon emission of Chinese industry," Energy Policy, Elsevier, vol. 39(6), pages 3520-3528, June.
    51. Hickey, Emily A. & Lon Carlson, J. & Loomis, David, 2010. "Issues in the determination of the optimal portfolio of electricity supply options," Energy Policy, Elsevier, vol. 38(5), pages 2198-2207, May.
    52. Schaeffer, Roberto & Szklo, Alexandre Salem & Pereira de Lucena, André Frossard & Moreira Cesar Borba, Bruno Soares & Pupo Nogueira, Larissa Pinheiro & Fleming, Fernanda Pereira & Troccoli, Alberto & , 2012. "Energy sector vulnerability to climate change: A review," Energy, Elsevier, vol. 38(1), pages 1-12.
    53. Chester, Lynne, 2010. "Conceptualising energy security and making explicit its polysemic nature," Energy Policy, Elsevier, vol. 38(2), pages 887-895, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chuang, Ming Chih & Ma, Hwong Wen, 2013. "An assessment of Taiwan’s energy policy using multi-dimensional energy security indicators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 17(C), pages 301-311.
    2. Månsson, André & Johansson, Bengt & Nilsson, Lars J., 2014. "Assessing energy security: An overview of commonly used methodologies," Energy, Elsevier, vol. 73(C), pages 1-14.
    3. Ang, B.W. & Choong, W.L. & Ng, T.S., 2015. "Energy security: Definitions, dimensions and indexes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1077-1093.
    4. Sato, Masahiro & Kharrazi, Ali & Nakayama, Hirofumi & Kraines, Steven & Yarime, Masaru, 2017. "Quantifying the supplier-portfolio diversity of embodied energy: Strategic implications for strengthening energy resilience," Energy Policy, Elsevier, vol. 105(C), pages 41-52.
    5. Larsen, Erik R. & Osorio, Sebastian & van Ackere, Ann, 2017. "A framework to evaluate security of supply in the electricity sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 646-655.
    6. Le, Thai-Ha & Chang, Youngho & Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki, 2019. "Energy insecurity in Asia: A multi-dimensional analysis," Economic Modelling, Elsevier, vol. 83(C), pages 84-95.
    7. Zhang, Long & Yu, Jing & Sovacool, Benjamin K. & Ren, Jingzheng, 2017. "Measuring energy security performance within China: Toward an inter-provincial prospective," Energy, Elsevier, vol. 125(C), pages 825-836.
    8. Jewell, Jessica & Cherp, Aleh & Riahi, Keywan, 2014. "Energy security under de-carbonization scenarios: An assessment framework and evaluation under different technology and policy choices," Energy Policy, Elsevier, vol. 65(C), pages 743-760.
    9. Ioannidis, Alexis & Chalvatzis, Konstantinos J. & Li, Xin & Notton, Gilles & Stephanides, Phedeas, 2019. "The case for islands’ energy vulnerability: Electricity supply diversity in 44 global islands," Renewable Energy, Elsevier, vol. 143(C), pages 440-452.
    10. Liu, Litao & Cao, Zhi & Liu, Xiaojie & Shi, Lei & Cheng, Shengkui & Liu, Gang, 2020. "Oil security revisited: An assessment based on complex network analysis," Energy, Elsevier, vol. 194(C).
    11. Raghoo, Pravesh & Surroop, Dinesh & Wolf, Franziska & Leal Filho, Walter & Jeetah, Pratima & Delakowitz, Bernd, 2018. "Dimensions of energy security in Small Island Developing States," Utilities Policy, Elsevier, vol. 53(C), pages 94-101.
    12. Dakpogan, Arnaud & Smit, Eon, 2018. "Measuring electricity security risk," MPRA Paper 89295, University Library of Munich, Germany.
    13. Kosai, Shoki & Unesaki, Hironobu, 2020. "Short-term vs long-term reliance: Development of a novel approach for diversity of fuels for electricity in energy security," Applied Energy, Elsevier, vol. 262(C).
    14. Selvakkumaran, Sujeetha & Limmeechokchai, Bundit, 2013. "Energy security and co-benefits of energy efficiency improvement in three Asian countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 491-503.
    15. Sovacool, Benjamin K., 2013. "An international assessment of energy security performance," Ecological Economics, Elsevier, vol. 88(C), pages 148-158.
    16. Kapil Narula & B. Sudhakara Reddy, 2014. "Three Blind Men and an Elephant: The Case of Energy Indices to Measure Energy Security and Sustainability," Working Papers id:5989, eSocialSciences.
    17. Narula, Kapil & Reddy, B. Sudhakara, 2015. "Three blind men and an elephant: The case of energy indices to measure energy security and energy sustainability," Energy, Elsevier, vol. 80(C), pages 148-158.
    18. Chalvatzis, Konstantinos J. & Ioannidis, Alexis, 2017. "Energy supply security in the EU: Benchmarking diversity and dependence of primary energy," Applied Energy, Elsevier, vol. 207(C), pages 465-476.
    19. Radovanović, Mirjana & Filipović, Sanja & Pavlović, Dejan, 2017. "Energy security measurement – A sustainable approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P2), pages 1020-1032.
    20. Zhang, Long & Bai, Wuliyasu & Xiao, Huijuan & Ren, Jingzheng, 2021. "Measuring and improving regional energy security: A methodological framework based on both quantitative and qualitative analysis," Energy, Elsevier, vol. 227(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:24:y:2013:i:c:p:9-20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.