Energy elasticity
Encyclopedia
Energy elasticity is a term used with reference to the energy intensity
of Gross Domestic Product
. It is "the percentage change in energy consumption to achieve one per cent change in national GDP".
This term has been used when describing sustainable growth in the developing world, while being aware of the need to maintain the security of energy supply and constrain the emission of additional greenhouse gas
es. Energy elasticity is a top-line measure, as the commercial energy sources used by the country in question are normally further itemised as fossil, renewable, etc.
For example, India
's national Integrated Energy Policy
of 2005 noted current elasticity at 0.80, while planning for 7-8% GDP growth. It expected to be able to reduce this to 0.75 from 2011 and to 0.67 from 2021-22. By 2007, India's Ambassador was able to inform the United Nations Security Council
that its GDP was growing by 8%, with only 3.7% growth in its total primary energy consumption, suggesting it had effectively de-linked energy consumption from economic growth.
China
has shown the opposite relationship, as, after 2000, it has consumed proportionately more energy to achieve its high double-digit growth rate. Although there are problems with the quality of the estimates of both GDP and energy consumption, by 2003-4 observers placed Chinese energy elasticity at approximately 1.5. For every one percent increase in GDP, energy demand grew by 1.5 percent. Much of this extra demand has been sourced internationally from fossil fuel
s, such as coal
and petroleum
.
Energy intensity
]Energy intensity is a measure of the energy efficiency of a nation's economy. It is calculated as units of energy per unit of GDP.* High energy intensities indicate a high price or cost of converting energy into GDP....
of Gross Domestic Product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
. It is "the percentage change in energy consumption to achieve one per cent change in national GDP".
This term has been used when describing sustainable growth in the developing world, while being aware of the need to maintain the security of energy supply and constrain the emission of additional greenhouse gas
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...
es. Energy elasticity is a top-line measure, as the commercial energy sources used by the country in question are normally further itemised as fossil, renewable, etc.
For example, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
's national Integrated Energy Policy
Energy policy
Energy policy is the manner in which a given entity has decided to address issues of energy development including energy production, distribution and consumption...
of 2005 noted current elasticity at 0.80, while planning for 7-8% GDP growth. It expected to be able to reduce this to 0.75 from 2011 and to 0.67 from 2021-22. By 2007, India's Ambassador was able to inform the United Nations Security Council
United Nations Security Council
The United Nations Security Council is one of the principal organs of the United Nations and is charged with the maintenance of international peace and security. Its powers, outlined in the United Nations Charter, include the establishment of peacekeeping operations, the establishment of...
that its GDP was growing by 8%, with only 3.7% growth in its total primary energy consumption, suggesting it had effectively de-linked energy consumption from economic growth.
China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
has shown the opposite relationship, as, after 2000, it has consumed proportionately more energy to achieve its high double-digit growth rate. Although there are problems with the quality of the estimates of both GDP and energy consumption, by 2003-4 observers placed Chinese energy elasticity at approximately 1.5. For every one percent increase in GDP, energy demand grew by 1.5 percent. Much of this extra demand has been sourced internationally from fossil fuel
Fossil fuel
Fossil fuels are fuels formed by natural processes such as anaerobic decomposition of buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years, and sometimes exceeds 650 million years...
s, such as coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
and petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
.