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UNIT 1 ENERGY AND DEVELOPMENT Structure 1.I
Introduction Objectives
The Energy Economy Energy Demand due to Population Growth and Industrialisation
1.2 1.3
Energy Demand vis-h-vis Population Growth Energy Demand in Industrialisation Energy Demand in Asian Developing Economies
1.4 1.5 1.6 1.7
The Earth's Energy Resource Base The Carrying Capacity of the Earth's Energy Base Summary Terminal Questions
1.1
INTRODUCTION
Modem industrial societies are characterised by intensive use of energy. Can you think of a day in your life without electricity or other sources of energy such as fuels for cooking and transport? Think of all the things that you use. Energy is required to produce them and reach them to you. You will agree that energy has been a crucial input in the current model of development. There is a close relationship between energy consumption and economic growth as measured by the growth of GDP and this has been demonstrated by many researchers. It is now argued that the cost and availability of energy is a major factor in promoting economic growth. However, as the energy intensive industrial economies have expanded, their adverse impact on the environment has grown. This aspect has come under closer scrutiny in the past few decades and an understanding of the role of energy in economic development will help us develop models of environment friendly energy usage. Therefore, we begin our discussion of the energy-environment relationship by understanding the multi-faceted role of energy in economic development. We first highlight the correlation between energy and economic growth as measured by the GDP. We then examine the energy resource base at our disposal and the various energy options available to us. Finally, we analyse the carrying capacity of the Earth in relation to our energy needs.
L 1
In the next unit you will learn about energy consumption in the modern energy economies.
Objectives After studying this unit, you should be able to: discuss the role of energy in economic growth; analyse the energy demand due to growing population and industrialisation; describe the energy resource base of the Earth; and explain how the Earth's carrying capacity is estimated.
1.2
THE ENERGY ECONOMY
The growth of an economy is measured in many ways. One of the prime indicators of economic growth is the Gross Domestic Product, or the GDP. With energy gaining centre-stage in the industrial economies, the cost and availability of energy was added as one of the major factors in the growth of GDP along with capital, labour and technical assets. Let us understand this point by looking at the trends of GDP growth vis-8-vis the growth in the use of energy and population.