As noted earlier, economic growth and energy demand are linked, but
the strength of that link varies among regions and their stages of economic
development. The state of economic development and the standard
of living of individuals in a given region strongly influence the link
between economic growth and energy demand. Advanced economies
with high living standards have a relatively high level of energy use
per capita, but they also tend to be economies where per capita energy
use is stable or changes very slowly. In industrialized countries, there is
a high penetration rate of modern appliances and motorized personal
transportation equipment. To the extent that spending is directed to
energy-using goods, it often involves purchases of new equipment to
replace old capital stock. The new stock is often more efficient than the
equipment it replaces, resulting in a weaker link between income and
energy demand (USEIA, 2011 ).