Evaluating Energy Policies through the Use of a Hybrid Quantitative Indicator-Based Approach: The Case of Mercosur

Abstract

This paper evaluates the performance of energy policies in the Southern Common Market (Mercosur), a regional initiative consisting of Argentina, Brazil, Paraguay and Uruguay, but also considering Venezuela (full member since mid-2012) and Bolivia (full participation under negotiation since 2015). The methodology is based on a qualitative-quantitative approach. First, we provide a critical review of the literature on energy security. Then, we carry out a comparative analysis of energy policies in Mercosur countries, concluding that there is no harmonization between them. Next, we offer the new concept of socio-environmental-energy security (SEES) as a more suitable approach to deal with current challenges, providing a hybrid quantitative indicator-based approach to the SEES index. Ergo, after defining the indicators, selecting the data, carrying out a normalization process, assigning weights and aggregating data points, the SEES composite index is generated. We suggest that energy integration can contribute to better regional performance in terms of energy policies and that the SEES index can guide policy makers and investments, replacing the old-fashioned concept of energy security.