The Energy Consumption and Economic Growth

Throughout human history, energy has played a critical role in society’s development. Many people believe that energy consumption has a close relationship with economic growth. We created a simple regression model to verify this assumption. We also compared fossil and renewable energy to see if there is a different impact on high-income compared fossil and renewable energy to see if there is a different impact on high-income and low-income countries. As a result, we found that energy consumption doesn’t have a strong relationship with high-income countries, and it has a negative relationship with low-income countries. Due to this finding, we conclude that energy consumption does not typically represent economic growth as people used to believe, and it should not be seen as a symbol that indicates a country’s development.