There is little doubt that economic growth and energy consumption go hand in hand. Accordingly, the highest per capita consumption of electricity is found in the countries that have the highest per capita income. 1 There is considerable evidence to suggest that, of the various variables that are part of the growth of a nation’s economy, power consumption plays a critical role. 2 Further disaggregation by source confirms electricity to be the most vital component of this positive correlation between economic growth and energy consumption. The demand for electricity usually out paces growth, and is followed by other sources in the energy mix (coal, natural gas, petroleum, etc).3 The strength of this relationship, though, varies from country to country. Above all, it is dependent upon the structure of production that is prevalent in an economy.

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