Prosperity is energy-intensive
Human well-being and energy use rise together
One of the guiding lights for energy policy should be this simple insight: prosperity is energy-intensive.
The internet meme simplifies all of this into variations of, “There are no low-energy rich countries.” It’s true that Our World in Data shows a clear correlation in the graphic. Beyond mere correlation, statistically minded researchers have found causal evidence of increased energy use raising living standards. But, of course, it can run in both directions. Wealth may enable greater energy consumption. In his usual, delicate manner, Nassim Taleb made this point recently, but it’s common knowledge among policy wonks.
One important caution about the meme is that its logic has some limits. Energy efficiency has improved our lives a lot—so much so that Hannah Ritchie at Our World in Data has pointed out we’ve decoupled energy use from economic growth in several countries.
Notice that we’re decoupling emissions and economic growth as well as energy use. Ritchie explains, “Since energy use is a key driver of CO2 emissions, it is not therefore surprising to also see this decoupling in CO2 emissions.” Of course, the decoupling between prosperity and energy use is not a universal phenomenon. Try looking at India’s last two decades, for example. In 2022, Americans used 11 times more energy per person than Indians. As Hannah Ritchie again notes, this roughly means that an American will use as much energy this month as an Indian will use in all of this year.
Understanding this gap and the graphics above serve as powerful reminders that prosperity and energy consumption are deeply intertwined. Decoupling emissions and economic success is a promising trend that deserves more celebration! The overarching truth remains clear: energy abundance is crucial for human well-being.
Prosperity is energy-intensive, and embracing this reality will steer us toward a brighter, more prosperous future.
Excellent job on clarifying the meme going viral ("there are no low-energy rich countries") and driving home this core insight: "energy abundance is crucial for human well-being."
Also, you made me laugh with this: "In his usual, delicate manner, Nassim Taleb made this point recently..."