Energy security and energy mix diversification nexus in the OECD countries

Energy security and energy mix diversification are two critical variables in the energy economics literature, and their dynamics have essential economic, social, and environmental consequences. This paper analyzed the effects of energy mix diversification on energy security risk in the 22 OECD countries from 1990 to 2018. Our findings indicate that diversifying energy portfolios acts as a hedge against energy security shocks and that diversification of the fossil energy mix is more efficient than a clean energy mix. Other results indicate that economic growth, the development of the manufacturing sector, and green technologies are pro-energy security factors. At the same time, trade openness and urbanization act as anti-energy security factors in the countries. Finally, the Granger non-causality test results indicate that energy security and energy mix diversification are interconnected. Accordingly, the policymakers must employ measures e.g. physical and technological infrastructure investments or emergency response planning, which are favorable for both variables.