Economic growth relies on energy consumption from "summary" of How the World Really Works by Vaclav Smil
Energy consumption is the lifeblood of economic growth. Without sufficient energy, economies cannot expand, businesses cannot operate, and people cannot go about their daily lives. The link between energy consumption and economic growth is fundamental and irrefutable.
In order for an economy to grow, it must consume energy. This energy is used to power factories, offices, transportation systems, and homes. Without energy, there would be no electricity to run machines, no fuel to transport goods, and no heat to keep buildings warm. In essence, energy is the fuel that drives economic activity.
As economies grow, they require more energy to sustain that growth. This is because increased economic activity leads to greater demand for energy-intensive goods and services. For example, as people become wealthier, they tend to consume more goods that require energy to produce, such as electronics, cars, and appliances. This, in turn, leads to higher energy consumption.
The relationship between energy consumption and economic growth is not a one-way street. Economic growth also drives energy consumption. As economies expand, they require more energy to power their growth. This creates a feedback loop where energy consumption fuels economic growth, which in turn leads to increased energy consumption.
It is clear that energy consumption is a critical factor in determining the pace and extent of economic growth. Without sufficient energy, economies would stagnate and fail to reach their full potential. This is why energy policy is such a crucial aspect of economic development, as it directly impacts a country's ability to grow and prosper.
