Uncertainty in the energy sector and evolving energy mix: a Europe-Asia comparison

Economic development and pressures from emerging countries to increase their growth levels have redefined global energy consumption patterns, contributing to enhanced geopolitical frictions. At the global level, the energy mix remains highly dependent on fossil fuels, with carbon-based energies remaining quite dominant and leading to significant environmental deterioration. Furthermore, economic and political frictions between fossil fuels exporting and importing economies have contributed to significant levels of uncertainty and also to the aggravation of inflationary pressures, as experienced early in the 2020s resulting from the Global Health Crisis and the Russo-Ukrainian War. This chapter discusses how the energy mix has evolved in European and Asian countries over time, particularly after a specific shock or crisis. It shows that specific energy policy choices have led to rising energy import dependency for the EU in the past two decades, in contrast with what is happening in Asian countries, particularly East-Asian countries. Some of the research core findings offer some evidence on energy policy having become a political question.