Energy intensity is a measure of the energy inefficiency of an economy. It is calculated as units of energy per unit of GDP (Gross Domestic Product) or some other measure of economic output. High energy intensities indicate a high price or cost of converting energy into GDP. On the other hand, low energy intensity indicates a lower price or cost of converting energy into GDP.
The energy intensity of a country or region differs from its energy efficiency. Energy intensity is affected by climate, economic structure (e.g. services vs. manufacturing), trade, as well as the energy efficiency of buildings, vehicles, and industry.[1]
High energy intensity means high industrial output as portion of GDP. Countries with low energy intensity signifies labor intensive economy.
Many factors influence an economy's overall energy intensity. It may reflect requirements for general standards of living and weather conditions in an economy. It is not atypical for particularly cold or hot climates to require greater energy consumption in homes and workplaces for heating (furnaces, or electric heaters) or cooling (air conditioning, fans, refrigeration). A country with an advanced standard of living is more likely to have a wider prevalence of such consumer goods and thereby be impacted in its energy intensity than one with a lower standard of living.
Energy efficiency of appliances and buildings (through use of building materials and methods, such as insulation), fuel economy of vehicles, vehicular distances travelled (frequency of travel or larger geographical distances), better methods and patterns of transportation, capacities and utility of mass transit, energy rationing or conservation efforts, 'off-grid' energy sources, and stochastic economic shocks such as disruptions of energy due to natural disasters, wars, massive power outages, unexpected new sources, efficient uses of energy or energy subsidies may all impact overall energy intensity of a nation.
Thus, a nation that is highly economically productive, with mild and temperate weather, demographic patterns of work places close to home, and uses fuel efficient vehicles, supports carpools, mass transportation or walks or rides bicycles, will have a far lower energy intensity than a nation that is economically unproductive, with extreme weather conditions requiring heating or cooling, long commutes, and extensive use of generally poor fuel economy vehicles. Paradoxically, some activities that may seem to promote high energy intensities, such as long commutes, could in fact result in lower energy intensities by causing a disproportionate increase in GDP output.
Figures of energy consumption used in statistics are energy sources marketed through major energy industries. Therefore, some small scale but frequent consumption of energy source like firewood, charcoal peat, water wheel, wind mill are not in its count.In countries, which does not have such developed energy industries or people with highly self energy efficient life style, report smaller energy consumption figures.
In regard to oil intensity, the kind of democracy a country has plays a role in reducing oil intensity, for example, centralized political institutions have made it easier for democratic governments to reduce levels of oil intensity. [2]
Various nations have significantly higher or lower energy intensities.
Of course, these numbers were produced with a mix of 2003 and 2004 figures, many of which are estimates. Actual mathematical models should use precise data of appropriate matching periods of study.
Several countries, like Sweden, Norway, France, and Canada, have made the transition to operating on low-carbon utilities. Norway and Canada have made the switch to hydro power; France relies on nuclear power. Since these countries have made the shift, they produce about a fifth of the carbon emissions in comparison to 13 other countries, like some including USA, Japan, and Italy.[6]
An inverse way of looking at the issue would be an 'economic energy efficiency,' or economic rate of return on its consumption of energy: how many economic units of GDP are produced by the consumption of units of energy.
It is not directly causal that a high GDP per capita must have lower economic energy efficiencies. See the accompanying chart for examples based on the top 40 national economies.
Energy intensity can be used as a comparative measure between countries; whereas the change in energy consumption required to raise GDP in a specific country over time is described as its energy elasticity.