The relationship between energy & poverty.

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There is a very strong correlation between energy use and economic development.As an economy develops, the demand for energy substantially increases as energy is required for the following:

  • Mechanisation of agriculture.
  • Expansion of manufacturing industry.
  • Demands of a growing service sector.
  • Increased freight & general business transportation.
  • Increasing car ownership.
  • Higher levels of domestic use.
  • Expansion of power networks to isolated areas.

If economic development increases, then there will be more disposable wealth to spend on energy consuming products, increased demand from industries (heavy industry), improve transport and increased demand from agriculture. If energy production/use increases there will be more employment, improved transport, higher tax earnings which can be used to invest in development schemes as well as an increase in foreign exchange earnings.

It should be noted that around the world, two billion people lack access to household electricity. It has been estimated that connecting these people to…


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