## Promoting Energy Security in Hungary: A Model-based Analysis

_Selected Issues Papers, September 9, 2025_

## Source details

**Canonical URL:** [Promoting Energy Security in Hungary: A Model-based Analysis](https://www.imf.org/en/publications/selected-issues-papers/issues/2025/09/08/promoting-energy-security-in-hungary-a-model-based-analysis-570117)

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## Bibliographic details
- Authors: Moheb T Malak, Hugo Rojas-Romagosa, Atticus Weller
- Published: September 9, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229023177.018

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### Context and Objective
- Evaluates Hungary’s energy security vulnerabilities and policy options in the context of Russia’s invasion of Ukraine in 2022 and the EU’s planned phaseout of Russian energy imports by 2027.
- Focuses on strengthening Hungary’s resilience to future external energy shocks.

### Methodology
- Leverages the IMF-ENV global computable general equilibrium model to simulate policy impacts.
- Analyzes coordinated EU-wide instruments alongside complementary national reforms.

### Policy Instruments and National Reforms Analyzed
- Coordinated EU-wide instruments:
  - Carbon pricing
  - Electricity market integration
- Complementary national reforms:
  - Fossil fuel subsidy removal
  - Tighter energy efficiency standards
  - Accelerated renewables permitting

### Key Findings
- Combined implementation of the analyzed policies can:
  - Significantly reduce Hungary’s import concentration
  - Enhance supply diversification
  - Lower energy expenditure risks
  - Strengthen the country’s resilience to future external energy shocks

### Subject Areas and Keywords
- Subject: Energy conservation, Environment, Non-renewable resources, Renewable energy
- Keywords: economic resilience, Energy conservation, Energy security, energy security vulnerability, EU electricity integration, Europe, Global, green transition, import concentration, Non-renewable resources, policy option, policy package, Renewable energy

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/09/08/promoting-energy-security-in-hungary-a-model-based-analysis-570117_