VSTE
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ISSN (online): 1805-9112

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Does Energy Dependence Threaten the State Economy?

Eliška Straková1*, Eva Kalinová2

  1. Institute of Technology and Business, School of Expertness and Valuation, České Budějovice, Czechia
  2. University of Žilina, Faculty of Operation and Economic of Transport and Communications, Žilina, Slovakia

* Corresponding author: strakovae@mail.vstecb.cz

Abstract

The combination of the need to adjust the energy mix in favor of the environment and the demands on energy consumption and at the same time on the economic growth of states leads to an increase in energy dependence. The high level of energy dependence is often cited as a potential threat to the economic growth of the state. The aim of the paper is to find out whether there is a correlation between macroeconomic indicators and the degree of energy dependence. Using the Pearson correlation coefficient, we examine the strength of the relationship between GDP, trade balance, inflation, unemployment and the degree of energy dependence on the example of the states of the European Union in the period 2005–2018. The results of the research show that the relationship between the degree of energy dependence and macroeconomic indicators for the European Union is completely individual and the strength and direction of correlation varies from country to country. Combining the degree of energy dependence in general with the direct threat to economic growth therefore proves to be misleading and it is necessary to always deal with a specific state in this matter and take into account other factors that could affect the relationship under study. These conclusions represent the beginning of a paradigm shift that energy dependence threatens the state economy, and therefore more emphasis can be placed on other aspects, such as the environmental ones, when adopting new energy strategies.

Keywords:energy dependenceGDPinflationbalance of paymentsunemploymentPearson correlation coefficientcorrelationEU

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