Richard Ha writes:
In this article called The Close Tie Between Energy Consumption, Employment, and Recession, from OurFiniteWorld.com, Gail Tverberg says that our energy use rises and falls with employment numbers, and also that Gross Domestic Product is related to energy use: The cheaper the energy, the more one uses and conversely, the more expensive the energy, the less people use. It's all about the cost of the energy.
The Close Tie Between Energy Consumption, Employment, and Recession
by Gail Tverberg
Posted on September 17, 2012
I have written recently about the close long-term relationship between energy consumption and economic growth. We know that economic growth is tied to job creation, so it stands to reason that energy consumption would be tied to job growth1. But I will have to admit that I was surprised by the closeness of the relationship for the period shown.
This close relationship is concerning, because if it holds in the future, it suggests that it will be very difficult to reduce energy consumption without a lot of unemployment. It also would seem to suggest that a shortage of energy supplies (as reflected by high prices) can lead to unemployment....
Gail Tverberg's former career was as an insurance actuary. Her job was about pricing insurance risk. That's a relevant set of skills to have as we move into the uncertain future.
Here in Hawai‘i, we are very fortunate: We have a robust set of alternative energy workarounds. But we do need to focus on affordable energy and proven technology to help us dodge the economic downturn bullet.
Read Gail's whole article here.