Energy Intensity in Northern Europe’s Economic Development – Curse or Bless?

Discussions on Estonian Economic Policy: Theory and Practice of Economic Policy, Vol. 20, No. 2, 2012

13 Pages Posted: 29 Dec 2012

See all articles by Marko Viiding

Marko Viiding

University of Tartu

Liina Joller

University of Tartu

Date Written: November 15, 2012

Abstract

It has been proven that a country’s development level increases with greater access to and use of electricity. However this holds true for lower levels of development – in the light of increasing political commitments for environmental concerns and global warming it is much harder to pinpoint best energy consumption pattern for sustainable economic development. Authors of this article measure energy intensity of the Nordic and Baltic countries by observing returns to GDP from amount of electricity used; comparing this to existing electricity production opportunities and cost. Findings demonstrate that low energy-intensiveness is economically more preferred but not ultimately necessary. Countries with well developed energy supply chains can maintain energy-intensive structure of the economy if the effectiveness of the structure is optimised.

Keywords: energy intensity, economic development, Nordic and Baltic countries

JEL Classification: E29, N74

Suggested Citation

Viiding, Marko and Joller, Liina, Energy Intensity in Northern Europe’s Economic Development – Curse or Bless? (November 15, 2012). Discussions on Estonian Economic Policy: Theory and Practice of Economic Policy, Vol. 20, No. 2, 2012. Available at SSRN: https://ssrn.com/abstract=2194490

Marko Viiding (Contact Author)

University of Tartu ( email )

Ülikooli 18
Tartu, 50090
Estonia

Liina Joller

University of Tartu ( email )

Ülikooli 18
Tartu 50090, 50090
Estonia

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