Charts showing the long-term GDP-energy tie (Part 2 – A New Theory of Energy and the Economy)
One phrase from this blog struck me; Now we have practically nowhere to go. To all the people working with disaster mitigation I implore you to scenario-study what a sudden fall in oil and gas supply would mean for the society you are charged with protecting. There are ways of handling this apart from the sort of mass-death that a several million city in minus 20 degrees C might find itself.
In Part 1 of this series, I talked about why cheap fuels act to create economic growth. In this post, we will look at some supporting data showing how this connection works. The data is over a very long time period–some of it going back to the Year 1 C. E.
We know that there is a close connection between energy use (and in fact oil use) and economic growth in recent years.
In this post, we will see how close the connection has been, going back to the Year 1 CE. We will also see that economies that can leverage their human energy with inexpensive supplemental energy gain an advantage over other economies. If this energy becomes high cost, we will see that countries lose their advantage over other countries, and their economic growth rate slows.
A brief summary of my view discussed in Part 1 regarding how inexpensive…
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