Does oil dependence cause energy risk?

These days, the issue of energy risk is becoming more prevalent worldwide. Particularly, the issue of oil dependence raises awareness. The previous studies provide very limited background to this issue because of the absence of an energy risk variable. In this context, this study is a pioneer as it...

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Main Authors: Bekhzod Kuziboev, Elbek Khodjaniyazov, Ilhan Ozturk, Khamid Sabirov, Samariddin Makhmudov, Sarbinaz Utegenova
Format: Article
Language:English
Published: Elsevier 2025-03-01
Series:Energy Nexus
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Online Access:http://www.sciencedirect.com/science/article/pii/S2772427125000348
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author Bekhzod Kuziboev
Elbek Khodjaniyazov
Ilhan Ozturk
Khamid Sabirov
Samariddin Makhmudov
Sarbinaz Utegenova
author_facet Bekhzod Kuziboev
Elbek Khodjaniyazov
Ilhan Ozturk
Khamid Sabirov
Samariddin Makhmudov
Sarbinaz Utegenova
author_sort Bekhzod Kuziboev
collection DOAJ
description These days, the issue of energy risk is becoming more prevalent worldwide. Particularly, the issue of oil dependence raises awareness. The previous studies provide very limited background to this issue because of the absence of an energy risk variable. In this context, this study is a pioneer as it empirically assesses the effect of oil dependence on energy risk, a novel variable that has never been applied before, in 84 countries using annual data from 2000 to 2021. The estimations are conducted in the sample of the world and development stage, employing the Method of Moments Quantile Regression (MMQR), which allows us to estimate the impact of oil dependence on energy risk at various quantiles of energy risk. The findings reveal that dependence on oil resources leads to energy risk in the world and developing countries, whereas in developed countries oil dependence does not cause energy risk. We assume that developed countries, with their advanced technological capabilities and strong international collaboration, have adopted various alternative energy sources. Therefore, as policy implications, enhancing energy source diversification is suggested since dependence of energy consumption on various sources mitigates oil dependence, thus energy risk. Furthermore, we emphasize the significance of technological progress, as it determines the efficient and minimal use of energy resources and oil, both of which depend on the level of technological advancement. Furthermore, enhancing the involvement of international organizations in energy cooperation is crucial for managing effective energy distribution.
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spelling doaj-art-ae2f920d6e924840b0fd5f7077a5ddda2025-08-20T03:42:55ZengElsevierEnergy Nexus2772-42712025-03-011710039310.1016/j.nexus.2025.100393Does oil dependence cause energy risk?Bekhzod Kuziboev0Elbek Khodjaniyazov1Ilhan Ozturk2Khamid Sabirov3Samariddin Makhmudov4Sarbinaz Utegenova5Department of Economics, Urgench State University, Home 14, Kh. Alimjan Str, 220100, Urgench, Uzbekistan; Department of Trade, Tourism and Languages, Faculty of Economics, University of South Bohemia, Studentská 13, České Budějovice, 37005, Czech RepublicDepartment of Business and Management, Urgench State University, Home 14, Kh. Alimjan Str, 220100, Urgench, UzbekistanCollege of Business Administration, University of Sharjah, UAE; Faculty of Economics, Administrative and Social Sciences, Nisantasi University, Istanbul, Turkey; University of Economics and Human Sciences in Warsaw, Warsaw, Poland; Department of Medical Research, China Medical University Hospital, China Medical University, Taichung 40402, Taiwan; Corresponding author.Department of Economics, Urgench Ranch University of Technology, Urgench 220100, UzbekistanDepartment of Economics, Mamun University, Khiva, Uzbekistan; Alfraganus University, Tashkent, Uzbekistan; Termez University of Economics and Service, Termez, UzbekistanDepartment of Accounting and Audit, Karakalpak State University, Home 1, Ch. Abdirov Str, 230100, Nukus, UzbekistanThese days, the issue of energy risk is becoming more prevalent worldwide. Particularly, the issue of oil dependence raises awareness. The previous studies provide very limited background to this issue because of the absence of an energy risk variable. In this context, this study is a pioneer as it empirically assesses the effect of oil dependence on energy risk, a novel variable that has never been applied before, in 84 countries using annual data from 2000 to 2021. The estimations are conducted in the sample of the world and development stage, employing the Method of Moments Quantile Regression (MMQR), which allows us to estimate the impact of oil dependence on energy risk at various quantiles of energy risk. The findings reveal that dependence on oil resources leads to energy risk in the world and developing countries, whereas in developed countries oil dependence does not cause energy risk. We assume that developed countries, with their advanced technological capabilities and strong international collaboration, have adopted various alternative energy sources. Therefore, as policy implications, enhancing energy source diversification is suggested since dependence of energy consumption on various sources mitigates oil dependence, thus energy risk. Furthermore, we emphasize the significance of technological progress, as it determines the efficient and minimal use of energy resources and oil, both of which depend on the level of technological advancement. Furthermore, enhancing the involvement of international organizations in energy cooperation is crucial for managing effective energy distribution.http://www.sciencedirect.com/science/article/pii/S2772427125000348Energy riskOil resourcesOil dependencyMMQR
spellingShingle Bekhzod Kuziboev
Elbek Khodjaniyazov
Ilhan Ozturk
Khamid Sabirov
Samariddin Makhmudov
Sarbinaz Utegenova
Does oil dependence cause energy risk?
Energy Nexus
Energy risk
Oil resources
Oil dependency
MMQR
title Does oil dependence cause energy risk?
title_full Does oil dependence cause energy risk?
title_fullStr Does oil dependence cause energy risk?
title_full_unstemmed Does oil dependence cause energy risk?
title_short Does oil dependence cause energy risk?
title_sort does oil dependence cause energy risk
topic Energy risk
Oil resources
Oil dependency
MMQR
url http://www.sciencedirect.com/science/article/pii/S2772427125000348
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AT samariddinmakhmudov doesoildependencecauseenergyrisk
AT sarbinazutegenova doesoildependencecauseenergyrisk