Energy supply deficit and energy vulnerability in European Union and Turkey

The increasing importance of the energy leads the countries to be more sensitive on energy policies. The energy policies that were implemented in the past by the countries, especially that faced energy supply deficit and were foreign-dependent due to this deficit; led these countries to be more foreign-dependent gradually. The energy supply deficit and the energy security problems that arise as a result of this deficit have become one of the most frequently discussed subject of the literature since the 1970?s. There are many measures in the literature towards achieving the energy supply security. The measures mainly include the practices such as energy efficiency implementations, energy diversification, increasing the ratio of renewable energy sources and increasing the production of domestic sources. In this study, the energy vulnerability indices for European Union and Turkey are generated. In order to generate this index four variables (ratio) are used. These variables include consumption and production ratio, consumption and reserve ratio, consumption and industrial production index ratio, import and industrial production index ratio. In this study the principal components analysis is used as an econometric method in order to generate the energy vulnerability indices. The study covers the period between 2008 and 2012 by months. When the main findings of this study are analyzed it is deduced that the energy vulnerability indices reveal the vulnerability of the energy industry and there is positive correlation between conjunctural fluctuations and the indices.