Role of Energy Efficiency in GDP

Role of Energy Efficiency in GDP – Gross Domestic Product the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well.

GDP plays a very significant role in growth of any country. Improvement in GDP is directly beneficial in development of nation.

Improving energy efficiency can be powerful tool for achieving sustainable economic development and most important for reducing energy consumption and environmental pollution on national level. This will directly impact the GDP of country.

But unfortunately, energy efficiency is very difficult to conceptualize and there is no single commonly accepted by any person easily until he has proper knowledge of energy efficient program. Because of that, measurement of achieved energy efficiency and its impact on national or regional economy is very complicated. Gross Domestic Product (GDP) is often used to assess financial effects of applied energy efficiency measures at the national and regional levels.

The growth in energy consumption per capita leads to a similar growth in GDP, but it is desirable to provide for the fall of these values. The paper analyzes some standard indicators and the analysis has been applied to a very large sample ensuring reliability for conclusion purposes

8 thoughts on “Role of Energy Efficiency in GDP

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