PDF document • 761.25 KB
Economic growth requires energy. Energy fuels industry and manufacturing, improves livelihoods, and connects markets. Consuming more energy is part of transforming into a modern economy. The historical relationship is quite clear: over time, economies which grow continue to do so while using more energy.
Comparing per capita income and energy consumption figures across countries today shows a non-linear relationship. Moving away from low, almost non-existent, levels of energy use, there is a sharp uptick in incomes. Once a country is wealthy, the positive relationship between energy use and income seems to level off. Energy, therefore, seems crucial at the early stages of development.