Energy Intensity of Final Consumption: the Richer, the Poorer the Efficiency.

Abstract

To maintain perpetual economic growth, most energy transition scenarios bet on a break in the historical relationship between energy use and gross domestic product (GDP). Practical limits to energy efficiency are overlooked by such scenarios, in particular the fact that high-income individuals tend to buy goods and services that are more energy intensive. Detailed assessments of the energy embodied in regional final consumption are needed to better understand the relationship between energy and GDP. Here, we calculate the energy necessary to produce households and governments' final consumption in 49 world regions in 2017. We correct prices at the sector level and account for the energy embodied in the whole value chain, including capital goods. We find that high-income regions use more energy per unit of final consumption than low-income ones. This result contradicts the common belief that a higher GDP is correlated with a better efficiency and questions the feasibility of mainstream energy transition scenarios based on universal GDP growth.