Acton Institute Powerblog

Economy and Energy Consumption

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John Stossel must have been on vacation last week.

I caught part of the 20/20 special offering for Earth Day on Friday night. Among the reports was one by Jay Schadler focusing on solar power as an alternative source of energy.

Schadler pointed out that even though the United States has only 5% of the world’s population, we consume 25% of the world’s energy. It’s a typical canard trotted out by those who want to depict us ugly Americans as “energy hogs.”

But instead of taking a deeper look at these kinds of statistics, the stats usually appear at the intro of a news piece as a hook leading into some other point about alternative energy.

But let’s take a brief look at the implications of such statistics. Let’s even accept them at face value. What such conclusions about the wastefulness per capita of American energy consumption overlook is the inherent connection between economic productivity and energy usage.

Yes, let’s say America’s share of worldwide energy usage is 25%.

But what is America’s share of the global economy? Somewhere between one-fifth and one-third of gross world product. So just maybe there is in fact a link between economic output and energy consumption.

Another aspect of this relationship appears when you run a historical series comparing per capita CO2 emissions and income growth on Google’s Gapminder software.

Jordan J. Ballor Jordan J. Ballor (Dr. theol., University of Zurich; Ph.D., Calvin Theological Seminary) is a senior research fellow and director of publishing at the Acton Institute for the Study of Religion & Liberty. He is also a postdoctoral researcher in theology and economics at the VU University Amsterdam as part of the "What Good Markets Are Good For" project. He is author of Get Your Hands Dirty: Essays on Christian Social Thought (and Action) (Wipf & Stock, 2013), Covenant, Causality, and Law: A Study in the Theology of Wolfgang Musculus (Vandenhoeck & Ruprecht, 2012) and Ecumenical Babel: Confusing Economic Ideology and the Church's Social Witness (Christian's Library Press, 2010), as well as editor of numerous works, including Abraham Kuyper Collected Works in Public Theology. Jordan is also associate director of the Junius Institute for Digital Reformation Research at Calvin Theological Seminary.

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