/ Publications / Economic principles for coordinated reactions to gas supply disruptions : first appraisal of the 2016 package on sustainable energy security
Energy | Other
Economic principles for coordinated reactions to gas supply disruptions : first appraisal of the 2016 package on sustainable energy security
04 April 2016
Authors: KEYAERTS, Nico
The rationale for the cooperation and coordination of reactions to supply disruptions can be based on political motives or economic motives; even if the rationale is political, coordinated reactions require the implementation of two economic principles. By using economic incentives for as long as possible and by minimising losses after economic incentives have been interrupted, countries commit to maximise the economic value of gas consumption and that creates common ground to support solidarity. While the proper implementation of both principles is necessary, the implementation from before the 2016 sustainable energy security package has several shortcomings; some of these issues are addressed in the new package. There is, however, room for additional improvements beyond the proposals in the package to better use economic incentives for activating demand side resources, to make the criteria for interrupting economic incentives firm and transparent such as a price cap, to orderly rank resources when economic incentives have been interrupted, and to make those on the receiving end of solidarity anticipate the end of solidarity as soon as possible.
The aviation industry is leading the technological revolution in transport and is focusing on improved safety, efficiency and sustainability. Single European Sky ATM Research (SESAR) is the European Union’s flagship [...]
As a low-carbon means of producing electricity, nuclear energy has been held up as a potentially influential solution in addressing the need for clean energy in the low-carbon transition. However, [...]
Join our community
To meet, discuss and learn in the channel that suits you best.
We use cookies to help personalise content and provide a better experience. By clicking Accept all, you agree to this, as outlined in our Cookie Policy. To change preferences or withdraw consent, please update your Cookie Preferences.