The notion of “decoupling” energy consumption from economic growth has become vogue in policy circles, but how much evidence is there that it’s really happening? If the energy intensity of our economy is falling, are we sure that it’s becoming more efficient, or might we just be offshoring energy-intensive industries to somewhere else…along with those emissions? If energy reaches a certain percentage of total spending, does it tip an economy into recession? Is there a necessary relationship between energy consumption and monetary policy? Is there a point at which the simple fact that we live on a finite planet must limit economic growth, or can economic growth continue well beyond our resource consumption? Can the declining EROI of fossil fuels tell us anything about the future of the economy? And can we have economic growth using clean, low-carbon fuels, or might transitioning to an economy that produces zero net new carbon emissions put the economy into recession and debt?
To help us answer these thorny questions, we turn to an expert researcher who has looked at the relationship between energy consumption and the economy over long periods of time and multiple economies, and found some startling results with implications for the Federal Reserve, for economic policymakers, and for all those who are involved in energy transition.
Geek rating: 8