The real dependence of our GDP on fossil fuels

The majority of models used to explain the growth process do not include energy as an essential factor that can influence it. In these models, the elasticity of GDP to energy, i.e. the sensitivity of GDP to the variation in energy consumption, is always below 10%. Yet this type of calculation is based on two unrealistic assumptions. My own empirical research, conducted on almost thirty countries, and over more than forty years, shows that in reality, the elasticity of GDP to primary energy ranges between 40%, for areas that are the least dependent on oil, such as France, and 70% for the USA, with a global average in the region of 60%..

Climate, Economy, Energy 3 MIN