Document Type : ORIGINAL ARTICLE

Authors

• azadeh mehrabian ¹
• Golestaneh Mehrdad ²
• Roya Seifipour ³
• Ali Akbar khosravinejad ⁴

¹ Department of Economics, Faculty of Economics and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran. aza.mehrabiyan@iauctb.ac.ir

² Department of Economics, Faculty of Economics and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran. mehrdad.golestane@gmail.com

³ Department of Economics, Faculty of Economics and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran. (Corresponding Author) roy.seyfipour@iauctb.ac.ir

⁴ Department of Economics, Faculty of Economics and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran. khosravinejad@gmail.com

Abstract

Energy security, as a key factor in economic growth, plays a crucial role in development, reducing economic uncertainties, and enhancing productivity. However, empirical evidence suggests that its impact on economic growth is not uniform across countries and may be influenced by the level of human development. Accordingly, this study investigates the nonlinear relationship between energy security and economic growth, emphasizing the threshold role of the Human Development Index (HDI). To this end, a composite energy security index was first calculated using Principal Component Analysis (PCA). Subsequently, its effect on economic growth was estimated using a Panel Threshold Kink Model (PTKM). The sample comprises developed and developing countries over the period 2000 to 2023, a timeframe selected due to contemporary energy security concerns. The results indicate that the effect of energy security on economic growth depends on the level of human development. Specifically, after the HDI surpasses a certain threshold, the intensity of energy security’s impact on economic growth strengthens. The findings also reveal that countries with higher levels of human development characterized by greater human capital, better institutional quality, and superior technological capacity are more capable of harnessing the benefits of energy security. Overall, the results underscore the simultaneous importance of enhancing both energy security and human development in achieving sustainable economic growth.

Keywords

• Energy Security
• Economic Growth
• Principal Component Analysis (PCA)
• Panel Threshold Kink Model (PTKM)
• Composite Index

Main Subjects

• Energy