An Essay on Integrated Understanding of Energy Security and Economic Efficiency of Energy

摘要

When energy security is defined as securing enough quantity of energy with the condition of "at an affordable price," it is necessary to distinguish it from economic efficiency of energy which means seeking lower energy price. This classification can be clarified by understanding that there is an inflection point in the demand curve of energy and the price elasticity of demand changes largely before and after that point. Estimating the demand at the inflection point makes it possible to calculate the stockpiling requirement for energy security.The shape of the energy demand curve varies from economy to economy, depending upon economic development stages and natural and cultural conditions, and it can change historically even in the same economy. In the future when energy resource constraints become obvious, an inflection point will also arise in the supply curve of energy, and it is possible to predict a sharp price hike due to tightening of energy supply and demand.