Improving inter-regional energy resilience
FRS researchers developed a framework that can support policymakers in understanding the impact of energy production disruptions on the whole economy in Energy Economics.
Dr He Peijun, Prof. Ng Tsan Sheng Adam, and co-author Dr Su Bin developed a framework that can provide valuable decision support for policymakers to study the impact of production disruptions in one region on the whole economy’s supply-demand balances. This can also guide decision making on where budget should be invested in efficiency improvement to achieve interregional energy resilience.
In the paper external page Energy-economic resilience with multi-region input–output linear programming models in Energy Economics, the authors presented a novel approach to evaluate energy resilience of an economy by integrating linear programming and multi-regional input–output analysis that accounts for uncertainties in energy production disruptions and also inter-regional inter-sectoral dependencies.
A model was developed to compute the impacts of random energy production disruptions on the entire multi-region input–output system in the form of final demand deficits. A formula was then proposed to evaluate the energy resilience of the system based on computing the largest set of disruptions that can be sustained by the system within given demand deficit budgets. A computational study was then performed using a 3-region-42-sector model based on China’s 2012 multi-regional input–output table.
The results show that regional trade barriers, coal-to-gas switch policies and technological efficiency of selected energy-intensive industries can influence China’s energy resilience significantly. This can provide guidance to policymakers on improving energy resilience in a systematic manner.
Dr He Peijun, formerly from the Optimal Management Strategies and Tactics project at the Future Resilient Systems (FRS), is a post-doctoral researcher under the Big Data Informed Urban Design and Goveranance project at the Future Cities Laboratory (FCL). Prof. Ng Tsan Sheng Adam is principal investigator for the Optimal Management Strategies and Tactics and Assessing and Measuring Energy Systems Resilience projects at FRS.