chapter 2 - Global Energy Consumption The productivity of a...

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Global Energy Consumption The productivity of a country is measured by the total value (dollars) of goods and services, called Gross Domestic Product (GDP), produced by its people. Therefore, the average value of good and services produced by each person - the GDP per capita of a country - is an indicator of the quality of life. Energy intensity is the relationship between energy consumption and growth in gross domestic product (GDP), and it is an important factor that affects changes in energy consumption over time. • In the industrialized countries, history shows the link between energy consumption and economic growth to be a relatively weak one, with growth in energy demand lagging behind economic growth. • In the developing countries, however, the link between energy consumption and economic growth have been more closely correlated, with energy demand growing in parallel with economic expansion. The total primary energy consumption of the world in 2004 was 446.44 Quadrillion Btus. In general, as the GDP (Gross Domestic Product) per person of any country increases the amount of energy that is consumed is also expected to increase. • For developing nations, the correlation is much stronger. • For developed nations the correlation is weak. For example, Iceland, Finland, United States and Netherlands with similar GDP per capita, have significant differences in energy consumption per capita. In other words, to produce one dollar worth of goods and services, U.S. uses twice the energy compared to Netherlands. Similarly Iceland uses four times as the energy compared to Netherlands. Global Energy Consumption and GDP per person The differences in energy consumption among countries are the result of: • Efficiency of industrial, transportation, commercial and residential energy. • Climatic and geographical areas of a country. • Lifestyles (use of more gas guzzling cars and SUVs and bigger size houses.) • The nature of the products produced by the nations’ industries. World Energy Outlook
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The United States Department of Energy projects strong growth for worldwide energy demand over the 24-year projection period from 2004 to 2030. • Total world consumption of marketed energy is expected to expand by 57 percent, from 447 quadrillion British thermal units (Btu) in 2004 to 559 quadrillion Btu in 2015 and then to 702 quadrillion Btu in 2030. • The fastest growth is projected for the nations of developing Asia, including China and India, where robust economic growth accompanies the increase in energy consumption over the forecast period. • Gross domestic product (GDP) in developing Asia is expected to expand at an average annual rate of 5.8 percent, compared with 4.1 percent per year for the world as a whole. With such strong growth in GDP, demand for energy in developing Asia doubles over the
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chapter 2 - Global Energy Consumption The productivity of a...

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