Wednesday, March 27, 2013

America's Energy Diet At Work: Relationship Between Electricity Usage & Economic Growth Weakens Tremendously

Between 1975 and 1995, a 1% increase in economic growth meant a 1% increase in electricity usage.  Economic growth and electricity usage were linked and rose or fell equally.  Thanks to the Great American Energy Diet, that is no longer true.

The slimming down of energy use means today that a 1% increase in GDP means about a 0.4% increase in electricity usage.  Now EIA projects that the relationship will weaken even further.

Unlike oil that is being battered by natural gas and biofuels, electricity is not under siege from substitutes. Instead, the decline in electricity usage is principally the result of more efficient buildings, appliances, motors, lighting systems, and more. It's energy slimming at work.

No comments:

Post a Comment