Energy Changes and Economic Performance
This chapter explores broad comparisons across all the scenarios to provide a perspective on the economic effects of energy costs and supply changes. The macroeconomic effects of the energy changes can be absorbed without much effect on future increases in production, real income and purchasing power. A reduction in costs of non-renewable has a far greater economic benefit than a reduction in costs of renewable energy forms. In contrast to the relatively small economic changes resulting from different energy conditions, there are major impacts on overall energy use across the different scenarios. The broad economic and energy adjustments to the changes in energy cost and supply conditions show a consistent pattern in that the economic changes are proportionately less than the energy changes. The initial cause for economic change is a change in energy costs. Consumers and other purchasers of finished goods and services respond to the rise in energy prices by shifting their purchase patterns away from energy.