Patterns of energy consumption and economic growth and structure

Summary

The role of energy utilization in economic growth has received much attention in recent years. The distinctive characteristics of our analysis are that this role is dealt with in a quantitative way and that both cross‐section and time‐series approaches are utilized. We confirm earlier findings that energy consumption tends to be more responsive to economic growth in less developed than in advanced countries. We conclude, however, that the relationship between energy and economic growth activity is affected by a variety of other factors. Multivariate tests suggest that the industrial structure of the economy and the composition of energy consumption are especially significant additional variables.

Notes

Program Officer, Higher Education and Research, Ford Foundation, and Professor of International Business, University of Virginia.