What is the relationship between energy use and economic output?
October 23, 2025
Gross Domestic Product (GDP) measures the dollar value of the final goods and services produced in a country. Changes in GDP are the most widely
Gross Domestic Product (GDP) measures the dollar value of the final goods and services produced in a country. Changes in GDP are the most widely
Digitalization uses digital technologies and systems to improve, transform, or create processes, operations, and services. It involves integrating digital tools and technologies, especially computers and
National governments began spending on environmental protection in the late 19th century, escalating after World War II due to pollution concerns. Key legislation emerged worldwide, including Japan’s 1967 law and the U.S. Endangered Species Act. In 2023, EU spending on environmental protection totaled €142 billion, highlighting diverse national priorities in tackling environmental issues.
Government policies significantly influence gasoline prices, leading to disparities across countries. Most nations tax gasoline, while some subsidize it, especially oil exporters. Higher income countries typically impose steeper gasoline taxes to harness revenue. There’s a growing call to reduce fossil fuel subsidies to curtail greenhouse gas emissions, advocating for carbon pricing to promote clean technology.
The global energy system encompasses diverse infrastructure requiring extensive investment, with USD 2.8 trillion spent in 2023. Public finance significantly supports energy projects, where fossil fuels received 56% of funding from 2013 to 2022. Clean energy finance increased until 2021, highlighting varying regional priorities and the dominance of large projects in funding distribution.
Global oil and gas consumption increased by 14% from 2013 to 2023, posing a challenge to limiting global warming. JP Morgan Chase led in financing upstream oil and gas activities, providing over USD 67 billion to various companies. Concerns were raised about banks’ commitment to reaching net zero emissions and prioritizing policies allowing the purchase of carbon offsets, which may promote greenwashing. Some oil and gas companies have weakened their commitments to reduce investment in upstream projects.
Shared prosperity measures economic growth inclusiveness, focusing on the income growth of the poorest compared to the overall population. It reduces poverty and inequality and is relevant even in high-income countries. Energy use can impact shared prosperity, but other factors like social safety nets and education also play a crucial role.
Electricity plays a crucial role in modern society, constituting 21% of energy use in the EU in 2022 and expected to grow due to initiatives in transportation and heating. The 220 largest electricity companies globally represent about 3% of the total market cap of publicly traded companies. This industry is highly concentrated, with just five companies holding 20% of the market cap.
Oil and natural gas make up 55% of global energy use, with the top 350 companies holding a combined market cap of $7.2 trillion, comprising 7% of the world’s largest companies. State-owned enterprises control 90% of the world’s crude oil reserves. Just 8 companies hold 50% of the market cap.
Americans closely monitor gasoline prices, viewing them as indicators of leaders’ success, economic health, and environmental policy effectiveness. The price of crude oil largely influences gas prices, yet federal and state taxes play a significant role. These taxes, popular due to revenue generation, heavily fund highway and mass transit spending.