US Energy Security from the Cleantech Revolution: Promise and Pitfalls

Abstract

This paper asks whether US energy security can be improved through the adoption of two clean technologies that require resources in which the US is not abundant and will likely import. It shows that energy interdependence can succeed in enhancing US energy security where policies of self-sufficiency have failed. However, this largely depends on the nature of the energy resource being traded as well as who the US is procuring it from. Interdependence doesn't necessarily bring about peace between two nations, particularly when energy is traded. Thus, it's important for the US to diversify its types of fuel as well as its suppliers in order to minimize costs as well as its exposure to economic and geopolitical shocks in the global energy market. The US can measure whether diversification is being done effectively through the total cost and total risk of its energy portfolio. The two clean technologies examined, nuclear power and lithium-ion batteries for next-generation hybrid and electric cars, yield positive diversification effects on the US energy portfolio and enhance its energy security.

Keywords: Energy Security, Energy Interdependence, Energy Independence, Cleantech, Alternative Energy, Lithium, Electric Cars, Uranium, Nuclear Power, Energy Policy, Energy Portfolio