physical availability of energy in france


How do IEA and Lefèvre measure energy supply security?

    The IEA (2007) and Lefèvre (2007) construct two indicators for energy supply security: one deals with the physical availability and the other with price risks stemming from supply (or sellers) market concentration.

What is the optimal level of security of energy supply?

    From an economic perspective, the optimal level of security of energy supply equates the marginal potential welfare losses, resulting from the damage due to either a disruption of supply or a price increase, and the marginal costs borne by the society to limit these losses.

How can society determine the value of energy supply disruptions?

    In summary, indications about the value that the society gives to energy supply disruptions can be computed by assessing what it costs society to guarantee that the N-1 principle is always complied with. This reasoning can be applied in the appraisal of projects too.

Which fossil fuel has the highest cost of supply security?

    Therefore, among fossil resources, natural gas is the fuel that presents by far the highest costs of supply security. 2) welfare loss (with a non-linear approach); 3) probability of supply disruption; and 4) price volatility. We offer this as a possible avenue for future research.
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