INTERCONECTION BETWEEN ENERGY CONSUMPTION AND GDP GROWTH

This paper associates the primary sources of energy with the historic economic periods, and it analyses the intrconnection betwen energy consumption and its different sources, as well as the rate of growth of gross domestic product with regard to the information available for individual countries. The growth of GDP in Europe before 1750 was estimated at around 0.5%, with the similar population growth rate. Up to 1820, with the more intensive usage of coal, the GDP growth rate increased from 0,5 to 1.5%. From 1820 to 1913, as the industrialised countires adopted the steam engine fueled by coal, GDP growth rate increased from 1,7% to 4.6%. Between two world wars there was a period of economic stagnation. GDP growth rate increased from 1% to 1.4% (2.8 in USA). In the post-war period, when the world turned to cheap oil, GDP growth rate was 5%. The oil crisis in the 1970s results in the reduction of oil consumption and diversification of energy sources. GDP growth rate was 2 to 2.5%. This paper shows the effect of fossil fuel utilisation in economic development.