Andriy Stavytskyy

Department of Economic Cybernetics,

Taras Shevchenko University of Kyiv

Ukraine

a.stavytskyy@gmail.com

Estimating the interrelation between energy security and macroeconomic factors in European countries

Ganna Kharlamova

Department of economic cybernetics,

Taras Shevchenko University of Kyiv

Ukraine

akharlamova@ukr.net

Vincentas Giedraitis

Vilnius University,

Lithuania

vincasgiedraitis@icloud.com

Vaidotas Šumskis

Lietuvos bankas,

Lithuania

vaidotas.sumskis@gmail.com

Abstract. This paper deals with the analysis of energy security in certain European countries. The investigation of different approaches to evaluation of the energy security parameter showed some drawbacks of their application in practice. This fact has led the authors to the idea to develop a completely new index of energy security that includes, inter alia, quite a traditional approach - based on the data about consumption, production, distribution, and allocation of energy resources - also paying attention to productivity and efficiency of using such resources. The first part of the paper discusses the advantages of a new parameter in comparison to the existing analogies. The next part concerns the estimation of four-panel regressions that describe the interrelation of main macroeconomic parameters with the new energy security index (NESI). They showed that the increase of GDP is positively correlated with NESI, and negatively - with CPI. Therefore, on the one hand, economic tools may improve energy security in Europe, and on the other, guaranteeing energy security leads to lower prices and bigger national output.

Received: December, 2017

1st Revision: March, 2018

Accepted: June, 2018

DOI: 10.14254/2071-

8330.2018/11-3/18

JEL Classification: Q3, Q43, Q48

Keywords: energy security, index, panel regression, energy policy, macroeconomics, Europe