Why Is Per Capita Energy Consumption at Recession Levels After Six Years of Recovery?
Per capita energy consumption remains at recession levels.
One way to verify rosy official data–GDP growth, low unemployment, etc.–is to compare it with data that is less easily gamed: for example, energy consumption.Those seeking a realistic snapshot of the Chinese economy routinely turn to energy consumption and rail traffic data for this reason: at least until recently, these data sets were more reflective of real economic activity than the glowing official numbers.
So let’s try the same analysis on the U.S. economy. Courtesy of Market Daily Briefing, here are four charts of per capita (per person) energy consumption.By using per capita data, we eliminate population growth as a variable.
If total energy consumption remains steady as population rises, the per capita energy consumption will drop.
As vehicles, appliances, etc. become more energy-efficient, we would expect per capita energy consumption to decline. For example, as mileage/unit of fuel of vehicles rise, the fuel needed to drive the same number of miles per year declines.
offsetting this gradual decline due to increasing efficiency is an overall rise in the standard of living, which in a consumerist society means owning and operating more vehicles, appliances, etc., taking more vacations, etc.–all of which tend to push per capita energy consumption higher.
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