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examBoard: Cambridge
examType: IGCSE
lessonTitle: Wealth and Energy Consumption
Energy powers our modern world - from heating our homes to fuelling our transport and powering industries. But not everyone uses the same amount of energy. One of the strongest factors that determines how much energy a person or country uses is wealth.
Key Definitions:
Around the world, there's a clear pattern: wealthier countries tend to use more energy per person than poorer countries. This relationship isn't just a coincidence - it reflects how economic development and energy use are closely linked.
Countries like the USA, Canada, Australia and many European nations have high GDP and high energy consumption. The average American uses about 10,000 kWh of electricity per year - that's about 25 times more than someone in India!
These countries often have:
Countries with lower GDP like many nations in Sub-Saharan Africa and parts of Asia have much lower energy consumption. A person in Ethiopia might use less than 100 kWh of electricity per year.
These countries often have:
As countries develop economically, they tend to climb what experts call the "energy ladder". This describes how energy use changes as wealth increases:
Reliance on biomass (wood, agricultural waste) for basic needs like cooking and heating. Limited electricity access. Low overall energy consumption.
Shift to modern fuels like LPG, kerosene and electricity. Growing ownership of appliances and vehicles. Industrial development increases energy demand.
High consumption of electricity and petroleum products. Multiple vehicles and energy-intensive appliances per household. High industrial and commercial energy use.
While wealth and energy use are linked, the relationship isn't always straightforward. Some wealthy countries use energy more efficiently than others. This is measured by "energy intensity" - how much energy is needed to produce each unit of GDP.
Interestingly, as economies develop, they often become more energy-efficient. This means that while total energy use increases with wealth, the amount of energy needed to produce each pound or dollar of economic output might actually decrease.
Energy consumption varies dramatically across the world. Here's how different regions compare:
China provides a dramatic example of how economic growth affects energy use. In 1990, the average Chinese citizen used just 511 kWh of electricity per year. By 2020, this had risen to over 5,000 kWh - a tenfold increase!
This surge in energy use corresponds directly with China's economic transformation. As GDP per capita rose from about $300 in 1990 to over $10,000 today, energy consumption climbed alongside it. China built hundreds of power plants, millions of homes gained access to electricity and car ownership exploded.
However, China is now working to reduce its energy intensity, investing heavily in renewable energy and efficiency measures to try to "decouple" economic growth from energy consumption growth.
The difference in energy consumption between rich and poor countries is enormous. Consider these facts:
As developing countries grow wealthier, their energy consumption is expected to rise significantly. The International Energy Agency predicts that global energy demand could increase by 50% by 2050, with most of this growth coming from emerging economies.
However, there are signs that the relationship between wealth and energy use might be changing:
New technologies are allowing countries to develop with less energy than was historically needed. LED lighting uses 85% less energy than incandescent bulbs. Modern appliances, vehicles and industrial processes are much more efficient than older versions.
This means developing countries might be able to "leapfrog" some of the high-energy stages that today's wealthy countries went through.
Renewable energy is becoming cheaper than fossil fuels in many places. Countries like India and Morocco are investing heavily in solar power rather than coal. This could change how development affects carbon emissions, even if energy use increases.
Some developing countries are pioneering distributed renewable energy systems, skipping the need for extensive power grids.
The challenge for the future is how to allow developing countries to increase their energy use and living standards while keeping global energy consumption within sustainable limits. Some approaches include:
Costa Rica shows that countries can develop economically without massive increases in fossil fuel use. Despite having a GDP per capita that's only about 20% of the USA's, Costa Rica has achieved high human development indicators and a life expectancy higher than the United States.
The country generates over 98% of its electricity from renewable sources (mainly hydropower, geothermal, wind and solar). It has invested in ecotourism rather than heavy industry and prioritised education and healthcare over energy-intensive consumption.
While Costa Rica's energy use has increased with development, it has followed a much less energy-intensive path than many other countries, showing that alternative development models are possible.
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