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Decoupling energy use and economic growth: Counter evidence from structural effects and embodied energy in trade

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Decoupling economic growth from energy consumption is a wide spread attempt to decarbonize economic activities and increase energy security. Almost all members of the European Union have decoupled the two… Click to show full abstract

Decoupling economic growth from energy consumption is a wide spread attempt to decarbonize economic activities and increase energy security. Almost all members of the European Union have decoupled the two since 2005 as measured by a steady decline in energy intensity, the ratio of final energy consumption and gross domestic product. Economic growth, energy efficiency and structural changes have all contributed to changes in energy intensity of economic activities at the national level. In this article, the authors analyze to what extent decoupling can be attributed to each of these three factors and in particular structural effects, namely deindustrialization and tertiarization, which shifts energy consumption abroad and re-imports it as embodied energy in products.

Keywords: economic growth; energy consumption; energy; embodied energy; structural effects

Journal Title: Applied Energy
Year Published: 2018

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