2024 JAN | Jaden Kim, Augustus J. Panton, and Gregor Schwerhoff
The paper "Energy Security and The Green Transition" by Jaden Kim, Augustus J. Panton, and Gregor Schwerhoff examines the historical determinants of energy security and the implications of the green transition for energy security. The authors find that diversification of energy trade partners has been the primary factor in maintaining energy security over the past two decades. They analyze how the green transition, driven by climate policies, is expected to have a net positive effect on energy security, provided that investments address new challenges posed by increased reliance on renewable energy sources. The paper decomposes energy security risks into diversification and political risk effects, quantifying their contributions at both global and national levels. It also discusses the challenges arising from the green transition, such as increased dependence on renewable energy imports and the intermittency of renewable energy sources, and suggests that strategic support for production capacities and infrastructure investments are necessary to mitigate these risks. The authors conclude that while the green transition can enhance energy security, it also introduces new challenges that require careful management.The paper "Energy Security and The Green Transition" by Jaden Kim, Augustus J. Panton, and Gregor Schwerhoff examines the historical determinants of energy security and the implications of the green transition for energy security. The authors find that diversification of energy trade partners has been the primary factor in maintaining energy security over the past two decades. They analyze how the green transition, driven by climate policies, is expected to have a net positive effect on energy security, provided that investments address new challenges posed by increased reliance on renewable energy sources. The paper decomposes energy security risks into diversification and political risk effects, quantifying their contributions at both global and national levels. It also discusses the challenges arising from the green transition, such as increased dependence on renewable energy imports and the intermittency of renewable energy sources, and suggests that strategic support for production capacities and infrastructure investments are necessary to mitigate these risks. The authors conclude that while the green transition can enhance energy security, it also introduces new challenges that require careful management.