Energy intensity in European Union countries after 2000

Michał Borychowski; Radosław Stochmal

doi:10.14595/CP/01/020

Michał Borychowski Poznan University of Economics and Business, Poland http://orcid.org/0000-0001-6256-2680
Radosław Stochmal Poznan University of Economics and Business, Poland http://orcid.org/0000-0001-9340-8248

Abstract

The improvement of the functioning of the energy sector through increasing energy efficiency or decreasing energy intensity is a crucial challenge for all economies and their sectors. This results from the fact that the positive changes in this sector can contribute to higher economic development and improvement of economic welfare. The aim of the paper was to identify the tendencies in energy intensity in European Union countries, and their causes and effects since 2000. The hypothesis that with economic growth (measured by GDP per capita) the energy intensity of an economy decreases and energy consumption per capita falls too, was tested. Descriptive statistics methods, Pearson correlation coefficient and analysis of intensity (intensity indicators) were used in the paper. The changes in variables are presented mainly using dynamics and geometric mean indexes. The source of data is the European Commission, Eurostat and the World Bank. The hypothesis was proved in 20 countries and for the European Union as a whole. For 7 countries it was not proved (Austria, Bulgaria, Croatia, Estonia, Latvia, Lithuania, Poland). Although some medium-developed countries increased the use of energy per capita during the period from 2000-2015 (Bulgaria, Estonia, Lithuania, Poland), these countries improved their energy efficiency much more (they reduced energy intensity). Finally, the effects are positive in these countries. There is the lowest energy intensity in highly-developed countries: Ireland, Denmark, United Kingdom, France, but there were the highest nominal and real decreases of energy intensity in countries with various GDPs (different GDP per capita levels): Ireland, Slovak Republic, Romania, Czech Republic, Bulgaria, Sweden, Poland. Among the most important determinants affecting the lower energy intensity belong restructuring of the economy and structural changes, technological changes, putting more capital into research and developmentand improvement of energy management systems.