The energy intensity of the world’s industrialized and developing economies—in terms of total energy consumed per unit of economic output—has been declining steadily over the last several decades as technology has improved and as a greater share of wealth is derived from less energy-intensive activities. Taken together, however, these intensity declines have not been sufficient to offset population increases and economic growth; overall energy consumption has steadily increased—in nearly all nations and for the world as a whole. Moreover, despite evidence that the technical potential for further energy-intensity reductions is enormous, there is evidence that country-level intensities are converging over time and may not, absent further policy intervention, continue to decline at the same rate as in recent decades. Some experts warn that rising material standards of living could, at some point and in some cases, begin to reverse past declines with potentially sobering implications for the prospect of achieving long-term, global sustainability goals.
Given the significant technical potential that exists to achieve further, cost-effective intensity reductions and given the critical importance of relieving current and projected stresses on the world’s energy systems, concerted policy action to maximize the contribution of demand-side options along with supply-side solutions is justified.
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