Adjusted Market Concentration Using Human Development Indicator
In order to improve by the Herfindahl-Hirschman index to account for the differences in the political/social stability of importing countries, the United Nations Development Programme Human Development Indicator (HDI) as index for long-term socio-economic stability.
The European Union has reduced the market concentration, adjusted by the Human Development Indicators of its natural gas imports by 25% from 2005 to 2014. The results indicate that diversifying natural gas supplies away from Russia and importing more Natural Liquefied Gas improve the energy security of the European Union as it would mean having a trade relationship with countries that are more socio-economically stable.