Energy intensity

Energy intensity is a measurement that is used to show how much a bit of energy is doing to benefit the economy. This value is calculated by taking the ratio of energy use to GDP, and indicates how well a certain economy is using their fuel sources. If an economy is more efficient in the way it uses its fuels, reducing the overall amount of waste, it has a low energy intensity. Energy intensity can provide a different insight into what a certain level of energy use means rather than simply looking at energy use per capita. This is because energy use is affected by per capita income, so by measuring energy production in terms of how wealthy a country is it is easier to control the effects of living in a wealthy versus a poor country. This reduces the likelihood of encountering misleading values as not accounting for how the income and wealth of a country impacts its energy use.

Generally speaking, the economies of countries around the world would benefit from having better access to energy, and energy intensity is a way of describing how much energy would be beneficial. Because of this, energy intensity can explain how well an economy is using its energy resources simply. Below is a map showing the relative energy intensities of countries across the globe.

Energy intensity is generally measured using a country's primary energy supply per unit of GDP, meaning that the only energy looked at is energy produced within a nation in its raw form. Examples of these types of energies would be crude oil, hydropower, coal, or raw natural gas before they are transformed into fuels that are used. The measurement of energy intensity also reflects energy production, which includes exported energy. However, it does not include energy that is imported from other nations. Energy intensity for one specific resource, as well as a country's overall energy intensity can all be looked at to evaluate economic performance and production efficiency. Below is a graph showing how the two indicators for energy intensity, GDP and primary energy use, have changed for countries over time relative to a normalized year.

Although energy intensity is a valuable way to look at how well a country produces goods, there are drawbacks to using energy intensity as a marker. First, there is no universal method in determining energy intensities and this results in values that do not correspond well. As well, the GDP value itself has inherent drawbacks in indicating how well an economy is doing and what the quality of life is inside that county. When using energy intensity, it is thus important to evaluate different factors that individual countries face that could effect how well its energy intensity corresponds to the situation in the country. For example, factors such as the degree of energy self-sufficiency, the country size and climate, and the differences in the personal energy consumption of the citizens in that country must be taken into account. All of these factors, when accounted for, represent how different countries produce and use their energy and how this corresponds to the quality of life of citizens in that country and how strong the economy is.

Energy Intensity vs. Energy Efficiency

Energy intensity is a useful measurement because it shows how efficiently economies are able to create their electricity. A low energy intensity is desirable - as it indicates a high quality of life. Increasing energy efficiency and reducing energy intensity are generally goals that countries set for themselves as a way to reduce the effects of climate change and conserve energy. Decreasing energy intensity is important as it encourages more economic activity and GDP growth so that a country can prosper but not rely on increased energy consumption to create this growth. Decreasing energy intensity boosts economic prosperity while reducing harmful environmental impacts.

Generally, energy intensity is looked at more as it is a more accurate representation of how advancing efficiency in production works with economic growth. Decreasing economic prosperity is not ideal, and thus being able to compare economic prosperity with environmental protection is important. Declines in energy intensity indicate efficiency improvements with little economic harm. Generally, in economic terms energy efficiency is not meaningful as it would be a number that comes from advances in many sectors and gives few predictions about how the economy will fare from these changes.

Trends

Generally, energy intensity increases during the early stages of industrialization as a large amount of economic advancement is generally paired with less effective production techniques. After this rapid industrialization, the energy intensity falls as environmental considerations are looked at and efficiency is evaluated. Ways to lower the energy intensity include advancing methods of extraction and increasing the efficiency with which production materials can be obtained. As well, improving the processing and production techniques aids in increasing efficiency while not losing product output. This in turn decreases energy intensity. As well, lowering environmental impacts or lowering production costs lowers the energy intensity.

The countries with the lowest energy intensities are Switzerland and Japan, meaning that they use the least amount of energy to produce the highest GDP. While it is most desirable to use as little energy as possible, it is more important in terms of having a low energy intensity to have a higher GDP versus simply having low energy usage. The reason for this is because as GDP increases it typically leads to higher energy efficiency and thus a lower energy intensity. Developing countries tend to have low energy use, but also a low GDP.