Accepted paper:

Energy security and market governance nexus: a cross-country empirical evidence


Ahmad Nawaz (COMSATS Institute of Information Technology)
Asad Ghalib (Liverpool Hope University)
Saima Ejaz (Lahore School of Economics)

Paper short abstract:

In this globalized world, energy interdependence requires effective governance.Existing literature argues that over reliance on free markets or governance alone cannot ensure sustainable energy security. Therefore, this paper investigates the role of market governance in ensuring energy security.

Paper long abstract:

This paper aims to empirically investigate the impact of market governance on energy security utilizing a cross-country panel data set controlling for country-specific macro-economic, social and geographical factors. To this extent, it first calculates the energy security index for 140 countries based on the dimensions of availability, accessibility, affordability and acceptability.Further, the emerging trends of energy security for different countries and regions are highlighted from 1996 to 2016.A cross-country empirical investigation of the impact of market governance on energy security controlling for country specific macro-economic, social and geographical factors is carried out followed by appropriate policies based on the empirical findings. The theoretical underpinning of the paper takes cue from Chang and Koh (2012) in the context of Japan. Which states that by implementing the principles of market governance and improving overall regulatory framework, Japan, an energy scarce country (without fossil fuel reserves) has been able to positively improve its energy security performance. This attributes to its pro-energy policies and proper balancing of market governance thus forcing government to further improve its energy sector. Therefore, it can be argued that unequal structures in context of macro-economic, social and geographical factors causes variation in market governance and ultimately on the energy security. This cross-country unbalanced panel data study is quantitative in nature. The data is gathered from various authentic secondary sources. For robust results, various regression techniques are applied i.e. Ordinary Least Square (OLS) regression analysis, Fixed/Random effects model and Generalized Method of Moments (GMM).

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