Economic development and end-use energy demand

We examine the relationship between economic development and energy demand. The paper identifies the development patterns that characterize particular economic sectors, and analyzes the effect of sector-specific energy demand growth rates on the composition of final energy demand. We also examine so me of the associated policy implications. Industrial energy demand increase s most rapidly at the initial stages of development, but growth slows stead ily throughout the industrialization process. Energy demand for transportat ion rises steadily, and takes the majority share of total energy use at the latter stages of development. Energy demand originating from the residenti al and commercial sector also increases to surpass industrial demand, but l ong term growth is not as pronounced as it is in the transport sector. Thes e results have implications for the primary energy demand of an economy as it develops, and thus, for domestic energy security and global geopolitical relationships.