The energy security of Japan: Causality analyses

Abstract

Energy is one of the important elements in the production of goods and satisfies the required services. The economy of Japan is basically dependent on imported energy resources for 97% of its total domestic energy consumption per year, the highest percentage of any major industrialized nations. Thus, reducing dependency and import expenditures are always main issues in the energy policy of Japan. In this study, four indices are constructed to measure Energy Supply Security: Dependency Index, Intensity Index, Local Production Index, and Composite Index. This paper investigates the causal relationship between aggregated and disaggregated levels of energy supply security indices and the input parameters that are: petroleum prices, total primary energy supply, energy consumption per capita, share of renewable energy sources, carbon dioxide emissions, human development index, and the mean of democracy indices of energy supplier countries of Japan for the period of 1975-2007.