The world economy needs ever-increasing amounts of energy to sustain economic growth, raise living standards, and reduce poverty. But today’s trends in energy use are not sustainable. As the world’s population grows and economies become more industrialized, nonrenewable energy sources will become scarcer and more costly. Carbon dioxide emissions from the use of fossil fuels will continue to build in the atmosphere, accelerating global warming. According to Intergovernmental Panel on Climate Change (IPCC) report, the average global temperature has increased by 0.76°C and sea level has risen by 17 cm since the 19th century (IPCC 2007).
Without government initiatives on energy or climate change, global temperatures may rise as much as 6°C by the end of the century. Global warming will have particularly pernicious effects for developing economies, with their high exposure and low adaptive capacity. Where energy comes from, how we produce it, and how much we use will profoundly affect development in the 21st century. Energy related indicators covered in this section accentuate energy production, use, dependency, and efficiency.
- Alternative and nuclear energy production is noncarbohydrate energy that does not produce carbon dioxide when generated. It includes hydropower and nuclear, geothermal, and solar power, among others. • Combustible renewable and waste comprise solid biomass, liquid biomass, biogas, industrial waste, and municipal waste. • Energy imports are estimated as energy use less production, both measured in oil equivalents. • Energy production refers to forms of primary energy—petroleum (crude oil, natural gas liquids, and oil from nonconventional sources), natural gas, solid fuels (coal, lignite, and other derived fuels), and combustible renewable and waste—and primary electricity, all converted into oil equivalents. • Energy use refers to the use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport. • Fossil fuel comprises coal, oil, petroleum, and natural gas products. • GDP per unit of energy use is the ratio of gross domestic product (GDP) per kilogram of oil equivalent of energy use, with GDP converted to 2005 constant international dollars using purchasing power parity (PPP) rates. An international dollar has the same purchasing power over GDP that a U.S. dollar has in the United States. • Pump price is the price of super grade gasoline and of diesel fuel, compiled by the German Agency for International Cooperation (GIZ), from its global network, and other sources, including the Allgemeiner Deutscher Automobile Club (for Europe) and the Latin American Energy Organization for Latin America. Local prices are converted to U.S. dollars using the exchange rate in the Financial Times international monetary table on the survey date. When multiple exchange rates exist, the market, parallel, or black market rate is used.