Page 6 - Driving Force for Energy Demand
P. 6
ving Forces for Energy Demand 2010
2.1 Economic Growth
2-3 The Energy Ladder The sharp increase in energy
demand observed at the
beginning of the new
millennium was mostly
attributed to the rapid growth of
China, India and other emerging
economies (Benthem & Romani,
2009). This rapid growth in
energy demand showed how
(The Baker Institute, 2009) crucial energy is as less
developed economies, often based on agriculture, gradually become industrial
economies. During this process the energy intensity of each additional unit of
output increases (Benthem & Romani, 2009). This process of development has
often been called the climb up the energy ladder. Industrialized countries
followed similar paths in the process of their development (Benthem & Romani,
2009). The energy ladder climb involves economic growth shown through rising
incomes, which allows for a change in energy sources from dirty sources like
biomass, candles and similar to 2-4 The Energy Ladder S-Curve
electricity and natural gas.
Along the climb, the use of
energy also expands to new
uses such as heating/cooling or
transportation, explaining the
rapid growth in the intensity of
energy usage. As a result,
highly developed countries end
up with very high energy (Romani, Soldatos, & Benthem, 2006)
intensities compared with developing nations. Figure 2-4 shows how the energy
ladder broadly creates an s-curve along the economic development of the
countries. The s shape of the curve is a result of when economies reach a certain
Posted by Etree Project Consultants Pvt Ltd only for knowledge sharing purpose. Page 6
2.1 Economic Growth
2-3 The Energy Ladder The sharp increase in energy
demand observed at the
beginning of the new
millennium was mostly
attributed to the rapid growth of
China, India and other emerging
economies (Benthem & Romani,
2009). This rapid growth in
energy demand showed how
(The Baker Institute, 2009) crucial energy is as less
developed economies, often based on agriculture, gradually become industrial
economies. During this process the energy intensity of each additional unit of
output increases (Benthem & Romani, 2009). This process of development has
often been called the climb up the energy ladder. Industrialized countries
followed similar paths in the process of their development (Benthem & Romani,
2009). The energy ladder climb involves economic growth shown through rising
incomes, which allows for a change in energy sources from dirty sources like
biomass, candles and similar to 2-4 The Energy Ladder S-Curve
electricity and natural gas.
Along the climb, the use of
energy also expands to new
uses such as heating/cooling or
transportation, explaining the
rapid growth in the intensity of
energy usage. As a result,
highly developed countries end
up with very high energy (Romani, Soldatos, & Benthem, 2006)
intensities compared with developing nations. Figure 2-4 shows how the energy
ladder broadly creates an s-curve along the economic development of the
countries. The s shape of the curve is a result of when economies reach a certain
Posted by Etree Project Consultants Pvt Ltd only for knowledge sharing purpose. Page 6
