Korean Energy Economic Review ISSN:1599-7057(Print) 에너지경제연구

The objective of this study is to discuss and establish the concept of energy vulnerability relating to energy security, to develop energy vulnerability measuring index in terms of macroeconomic effects and to develop a theory for policy measures in order to resolve energy vulnerability issues based on the designed index. In order to improve the energy vulnerability index, there are two methods for Korea:(1) give priority to reduce market risk and then reduce supply risk, and (2) give priority to reduce supply risk and then reduce market risk. Market risk tends to be managed by internal factors, such as energy intensity and ability to pay, and with this tendency it is relatively easier to resolve the issues than domestic reserves or geopolitical risk. Therefore, it is recommended to improve market risk first and then supply risk.