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Energy Efficiency & Human Economic Welfare

Energy Efficiency & Human Economic Welfare. By Garry Jacobs and Ivo Šlaus. Club of Rome International Conference on “The Future of Energy & Interconnected Challenges of the 21 st Century” Basel -- October 17-18, 2011. Sustainable Human Welfare. 2. Security. Physical Peace Energy

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Energy Efficiency & Human Economic Welfare

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  1. Energy Efficiency &Human Economic Welfare By Garry Jacobs and Ivo Šlaus Club of Rome International Conference on “The Future of Energy & Interconnected Challenges of the 21st Century” Basel -- October 17-18, 2011

  2. Sustainable Human Welfare 2

  3. Security Physical Peace Energy Climate Social Income & employment Health & retirement Social stability Psychological Absence of catastrophic threats Confidence in ourselves, our institutions & opportunities

  4. Human Economic Welfare Index (HEWI) 3 • Composite index of human economic welfare • Encompasses factors omitted by GDP • Maintains utility of an easily measured index, e.g. CPI • Components of HEWI • Personal Disposable Income (PDI) • Human Welfare Government Expenditure (HWGE) • Full Employment Index (FEI) • Economic Welfare Index (EWI) -- equality • Combined Education Index (CEI) • Health Adjusted Life Expectancy Index (HALE) • Energy Efficiency Index (EEI)

  5. Energy Intensity 1830-2000 75%  4 Source : Marina Fischer-Kowalski and Helga Weisz, “Transition to a Globally Sustainable Metabolism—Possible and Impossible Futures” Presented at the 2008 Conference of the International Society for Ecological Economics, Nairobi, Kenya, August 2008; p. 7. • Energy Intensity is Energy consumption per unit of GDP

  6. Projected US Energy Intensity 2008-2035 15% Evolution of economy: Services now account for 78% of US GDP & 64% of global output Source EAI. 2008 =1 5

  7. Fossil Fuel Energy Intensity for Selected OECD Countries 1970–2008 USA  60% UK  55% Switz  40% 6

  8. Fossil Fuel Energy Efficiency Index (EEI) 7 • Relates fossil fuel energy consumption to Economic Welfare • Household consumption expenditure + • Government welfare related expenditure • Health • Education • Social protection & employment insurance • Housing • Environmental protection • Measures changes over sliding10 year periods • Higher EEI reflects investments in sustainability • Shift to renewable sources • Improved energy efficiency • Shift to less energy-intensive economic activities

  9. EEI for Select Countries: 1995 - 2008 8 FFEC in USA 27%  in 18 years • Energy Intensity unit: Btu/ 2000 intl dollars PPP; FFEC in BTU per dollar. HWE in constant $2005 PPP

  10. Trends in EEI 1975 to 2005 10

  11. Human Economic Welfare Index (2005)

  12. Thank You

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