The IEO96 projections assume that world economic growth will average about 3.0 percent per year, but that growth in energy use will slow to 2 percent. Population is also expected to grow substantially over the forecast period, but at less than one-half the rate of income growth. The slow growth in population relative to growth in GDP permits substantial improvements in per capita income over the projection period. Both the level and composition of energy demand are affected by gains in per capita income. In general, the more advanced an economy and the higher personal income, the greater the demand for energy-using equipment.
Electricity demand is especially sensitive to growth in income.
Gene Tyner, Sr.