UZH-Logo

Energy security Coping with multiple supply risks


Zweifel, Peter; Bonomo, Susanne (1995). Energy security Coping with multiple supply risks. Energy Economics, 17(3):179-183.

Abstract

This study starts from the observation that today's Western trading nations are exposed to multiple risks of energy supplies, eg simultaneous shortage of oil and gas supplies. To cope with these risks, both oil and gas can be stockpiled. Adopting the viewpoint of a policy maker who aims at minimizing the expected cost of security of supply, optimal simultaneous adjustments of oil and gas stocks to exogenous changes such as an increase in the probability of supply disruption are derived. Against this benchmark, one-dimensional rules such as ‘oil reserves for 90 days’ turn out to be not only suboptimal but also to suggest adjustments exacerbating suboptimality.

This study starts from the observation that today's Western trading nations are exposed to multiple risks of energy supplies, eg simultaneous shortage of oil and gas supplies. To cope with these risks, both oil and gas can be stockpiled. Adopting the viewpoint of a policy maker who aims at minimizing the expected cost of security of supply, optimal simultaneous adjustments of oil and gas stocks to exogenous changes such as an increase in the probability of supply disruption are derived. Against this benchmark, one-dimensional rules such as ‘oil reserves for 90 days’ turn out to be not only suboptimal but also to suggest adjustments exacerbating suboptimality.

Citations

11 citations in Web of Science®
16 citations in Scopus®
Google Scholar™

Altmetrics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:1995
Deposited On:11 Feb 2008 12:21
Last Modified:05 Apr 2016 12:17
Publisher:Elsevier
ISSN:0140-9883
Publisher DOI:10.1016/0140-9883(95)00018-P

Download

Full text not available from this repository.View at publisher

TrendTerms

TrendTerms displays relevant terms of the abstract of this publication and related documents on a map. The terms and their relations were extracted from ZORA using word statistics. Their timelines are taken from ZORA as well. The bubble size of a term is proportional to the number of documents where the term occurs. Red, orange, yellow and green colors are used for terms that occur in the current document; red indicates high interlinkedness of a term with other terms, orange, yellow and green decreasing interlinkedness. Blue is used for terms that have a relation with the terms in this document, but occur in other documents.
You can navigate and zoom the map. Mouse-hovering a term displays its timeline, clicking it yields the associated documents.

Author Collaborations