Re-estimating the decoupling effect: Is there an actual transition towards a less energy-intensive economy?

The historical issue of natural resources scarcity is revived currently through the empirical investigation into the dependence of modern economy on the inputs of material and energy. The contemporary debate on de-growth and a-growth feeds on the empirical assessments of the relationship between energy-material use and current growth trends. In this context, the present study attempts a re-estimation of the energy-economic growth decoupling effect taking into account the physiology and, hence, the dimensionality that economic goods have. The Energy/GDP per Capita ratio is proposed as an indicator that approximates better than the Energy/GDP ratio the real world properties of production and, therefore, its energy requirements. The resulting estimations of decoupling effect are less “optimistic” than those based on Energy/GDP ratio and prevalent in the relevant contemporary literature.

► The relationship between growth and energy use is investigated through new indicators revealing aspects of economic process.
► The physical properties and the “dimensionality” of economic production are taken into account.
► Economic goods inevitably have certain material properties and “embody” energy inputs in order to serve the human needs.
► The decoupling potentials of economic growth, from energy use, are less “optimistic” in our estimations.