Svitlana Kolosok, ORCID: https://orcid.org/0000-0002-5133-9878
PhD, Sumy State University, Ukraine
Yevhen V. Kovalenko, ORCID: https://orcid.org/0000-0002-2111-9372
PhD, Sumy State University, Ukraine
This paper analyzes various aspects of energy dependency and identifies the hidden factors behind national energy security. Based on a review of the scientific literature, the factors that reduce energy security in the consumption of natural gas, oil, and nuclear energy generation were identified. One such factor is import dependency on energy resources. Import dependency on energy is a crucial characteristic of energy security and can exacerbate the effects of external aggression, non-competitive behavior, and pressure. Given the energy crisis of 2022, most countries around the world have revised their energy security policies to reduce import dependency by diversifying supplies and reducing dependence on Russian energy resources. The factor analysis of energy dependency ratios, 1990-2020, was used to study the energy security of the EU27 countries. The factor analysis was performed for annual indices calculated using the Eurostat database of “Simplified energy balances.” The paper hypothesized the existence of latent relationships between energy security variables for the twenty-seven EU countries. The hypothesis was verified using Bartlett’s sphericity test and Kaiser-Meyer-Olkin criterion. The results of hypothesis testing showed its statistical significance (the p-value < 0.05) and the possibility of factor analysis. Correspondence indices also indicated the adequacy of possible prediction of a set of variables. The factor analysis was executed in Python using the FactorAnalyzer module (the release 0.4.0). The principal factor extraction and the varimax rotation model were used to obtain the initial solution, preserving the orthogonality of the loading matrix. The factor structure of the model was confirmed for four factors consisting of the twenty-eight elements. The received four factors model allowed us to describe around 80% of the cumulative variance. It was found that each factor separately explained 46.89%, 15.80%, 10.91%, and 6.39% of the variance, respectively.
Keywords: energy dependency, energy policy, energy security, natural gas security, net import dependency.
JEL Classification: O30, Q41, Q42.
Cite as: Kolosok, S., Kovalenko, Ye.V. (2022). Factor Analysis Of Energy Security: Net Import Dependency. SocioEconomic Challenges, 6(2), 138-146. https://doi.org/10.21272/sec.6(2).138-146.2022
This work is licensed under a Creative Commons Attribution 4.0 International License
- Alrwashdeh, S. S. (2022). Energy sources assessment in Jordan. Results in Engineering, 13. [CrossRef].
- Bhowmik, D. (2019). Decoupling CO2 Emissions in Nordic countries: Panel Data Analysis. SocioEconomic Challenges, 3(2), 15-30. [CrossRef].
- C/2022/0631 (2022). Commission Delegated Regulation (EU) /… amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities. [Link].
- Cai, Y., Zhang, D., Chang, T., & Lee, C. (2022). Macroeconomic outcomes of OPEC and non-OPEC oil supply shocks in the euro area. Energy Economics, 109. [CrossRef].
- Chen, K., Ng, K. H., Cheng, C. K., Cheng, Y. W., Chong, C. C., Vo, D. N., Ismail, M. H. (2022). Biomass-derived carbon-based and silica-based materials for catalytic and adsorptive applications- an update since 2010. Chemosphere, 287. [CrossRef].
- Cho, I. H. (2022). To escape or embrace reactors? the politics of nuclear phase-out in Germany and south Korea. Pacific Review, 35(1), 32-58. [CrossRef].
- Cholewa, M., Mammadov, F. & Nowaczek, A. The obstacles and challenges of transition towards a renewable and sustainable energy system in Azerbaijan and Poland. Mineral Economics, 35, 155–169 (2022). [CrossRef].
- Chygryn, O., Lyulyov, O., Pimonenko, T., & Mlaabdal, S. (2020). Efficiency of oil-production: The role of institutional factors. Engineering Management in Production and Services, 12(4), 92-104. [CrossRef].
- COM/2022/108 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions – REPowerEU: Joint European Action for more affordable, secure and sustainable energy. [Link].
- El Amri, A., Boutti, R., Oulfarsi, S., Rodhain, F., Bouzahir, B. (2020). Carbon financial markets underlying climate risk management, pricing and forecasting: Fundamental analysis. Financial Markets, Institutions and Risks, 4(4), 31-44. [CrossRef].
- Elnikova, Ju., Barhaq, A.R. (2020). Transparency of Responsible Investment Environment. Business Ethics and Leadership, 4(4), 68-75. [CrossRef].
- Eurostat (2022a). Energy statistics – an overview. [Link].
- Eurostat (2022b). EU energy mix and import dependency. Eurostat Statistics Explained. [Link].
- Eurostat (2022c). Simplified energy balances. [Link].
- Fennovoima has terminated the contract for the delivery of the Hanhikivi 1 nuclear power plant with Rosatom. (2022). [Link].
- George, B. (2020). Inclusive Sustainable Development in the Caribbean Region: Social Capital and the Creation of Competitive Advantage in Tourism Networks. Business Ethics and Leadership, 4(3), 119-126. [CrossRef].
- GOV.UK (2022). British energy security strategy. [Link].
- Government Of Ireland (2022). National Energy Security Framework. [Link].
- Government of the Republic of Lithuania (2018). National Energy Independence Strategy 2018. [Link].
- Government of the Republic of Lithuania (2022). Lithuania completely abandons Russian gas imports. [Link].
- IEA (2021). Net Zero by 2050, IEA, Paris. [Link].
- Jiang, H., Liu, L., Dong, K., & Fu, Y. (2022). How will sectoral coverage in the carbon trading system affect the total oil consumption in China? A CGE-based analysis. Energy Economics, 110. [CrossRef].
- Kanwal, S., Mehran, M. T., Hassan, M., Anwar, M., Naqvi, S. R., & Khoja, A. H. (2022). An integrated future approach for the energy security of Pakistan: Replacement of fossil fuels with syngas for better environment and socio-economic development. Renewable and Sustainable Energy Reviews, 156. [CrossRef].
- Karpavicius, T., & Balezentis, T. (2022). Public service obligation levy in the context of energy sustainability and security: The cases of Ireland, Greece, Denmark and Lithuania. Energies, 15(1). [CrossRef].
- Korkmaz, O., & Önöz, B. (2022). Modelling the potential impacts of nuclear energy and renewables in the Turkish energy system. Energies, 15(4). [CrossRef].
- Kyrychenko, K., Laznenko, D., & Reshetniak, Ya. (2021). Green University as an Element of Forming a Sustainable Public Health System. Health Economics and Management Review, 2(4), 21-26. [CrossRef].
- Mara, D., Nate, S., Stavytskyy, A., & Kharlamova, G. (2022). The place of energy security in the national security framework: An assessment approach. Energies, 15(2). [CrossRef].
- Mišík, M. (2022). The EU needs to improve its external energy security. Energy policy, 165. [CrossRef].
- Mróz, M. (2022). Energy security in danger? A comparative analysis of oil and copper supply. Energies, 15(2). [CrossRef].
- Pavlyk, V. (2020). Assessment of green investment impact on the energy efficiency gap of the national economy. Financial Markets, Institutions and Risks, 4(1), 117-123. [CrossRef].
- Performance of State Atomic Energy Corporation Rosatom in 2020. [CrossRef].
- Pimonenko, T., Us, Ya., Myroshnychenko, Yu., Dubyna, O., Vasylyna, T. (2021). Green Financing for Carbon-Free Growth: Role of Banks Marketing Strategy. Financial Markets, Institutions and Risks, 5(3), 71-78. [CrossRef].
- Qin, Y., Zhou, M., Pan, D., Klimont, Z., Gingerich, D. B., Mauzerall, D. L., Bielicki, J. M. (2022). Environmental consequences of potential strategies for China to prepare for natural gas import disruptions. Environmental Science and Technology, 56(2), 1183-1193. [CrossRef].
- Rodríguez-Fernández, L., Carvajal, A. B. F., & de Tejada, V. F. (2022). Improving the concept of energy security in an energy transition environment: Application to the gas sector in the European union. Extractive Industries and Society, 9. [CrossRef].
- Sahoo, K. K. (2017). Transform of Ethical Practices in Globalized Economy, a Special Focus on Ghana. Business Ethics and Leadership, 1(4), 58-65. [CrossRef].
- Tutar, H., Sarkhanov, T., & Guliyeva, N. (2022). Eastern mediterranean area in energy security of the european union: From sea border issues to economic conflicts of interest. International Journal of Energy Economics and Policy, 12(1), 332-341. [CrossRef].
- Us, Ya., Pimonenko, T., Tambovceva, T., & Segers, J-P. (2020). Green transformations in the healthcare system: the covid-19 impact. Health Economics and Management Review, 1(1), 48-59. [CrossRef].
- Usman, A., Ozturk, I., Naqvi, S. M. M. A., Ullah, S., & Javed, M. I. (2022). Revealing the nexus between nuclear energy and ecological footprint in STIRPAT model of advanced economies: Fresh evidence from novel CS-ARDL model. Progress in Nuclear Energy, 148. [CrossRef].
- Voytyuk, O. (2022). The baltic pipe and its impact on energy security in central and eastern europe. [Baltic Pipe oraz jego wplyw na bezpieczenstwo energetyczne w regionie Europy Srodkowo-Wschodniej] Polityka Energetyczna, 25(1), 89-108. [CrossRef].
- Yang, Y., Liu, Z., Saydaliev, H. B., & Iqbal, S. (2022). Economic impact of crude oil supply disruption on social welfare losses and strategic petroleum reserves. Resources Policy, 77. [CrossRef].
- Ziabina, Ye., Kovalenko, Ye. (2021). Regularities In The Development Of The Theory Of Energy Efficiency Management. SocioEconomic Challenges, 5(1), 117-132. [CrossRef].
- Ziabina, Ye., Pimonenko, T., Starchenko, L. (2020). Energy Efficiency Of National Economy: Social, Economic And Ecological Indicators. SocioEconomic Challenges, 4(4), 160-174. [CrossRef].