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2. Fundamentals of Global Energy Business Michael J. Orlando University of Colorado - Denver week 1: Demand for Energy Video 5: determinants of demand

3. 3 Global Energy Management Program---- Business School. US Primary Energy Consumption:

4. 4 Global Energy Management Program---- Business School. Determinants of Demand What drives demand for primary energy resources? A: price of related goods (complements and substitutes) A: total income

5. 5 Global Energy Management Program---- Business School. Determinants of Demand What drives demand for primary energy resources? A: price of related goods (complements and substitutes) - via technical change? - via urbanization? A: total income - via productivity (∆ earnings per person) - via population (∆ # people) - via government policy (income taxes and subsidies)

6. 6 Global Energy Management Program---- Business School. Determinants of Demand ↑ productivity ↑ population ↑ total income demand more of everything (including primary energy) innovation (=> new technologies) re-order prices of goods relative to their complements and substitutes urbanization

7. 7 Global Energy Management Program---- Business School. US Primary Energy Consumption:

8. 8 Global Energy Management Program---- Business School.