In an age where we live in a world with abundant resources, one question is on many people’s minds: how essential is electricity? A lot goes into determining how necessary electricity is, including cost, availability, and the impact on quality of life. Here’s a look at some of these factors.
World annual electricity consumption per capita
In 2013, the world’s annual electricity consumption per capita reached 3084 kWh. It is a significant increase from 1990 when the average was about 2900 kWh. The rise in consumption is driven by economic restructuring. However, it remains heavily dependent on fossil fuels.
Per capita, energy use in developed economies is four to five times higher than in developing countries. Countries with a high population, such as the United States, consume the most.
On the other hand, per capita, energy use is lower in nations with a low population. These countries are often considered to be the least developed. A few exceptions, such as Iceland, are among the highest oil and other energy resources consumers.
Sparks Electric is a basic necessity of modern life. It warms and cools homes, provides pure light throughout the day, and allows for electronic equipment. Therefore, power must be supplied reliably.
In addition, electricity is essential for industry and commercial services. The International Energy Agency (IEA) collects electricity power production and distribution data. They consult national statistical offices and oil companies to make these data more accurate.
Price of electricity
Many factors affect the price of electricity. These include the power generation cost, government subsidies, and government taxes. Electricity pricing also differs from country to country and from locality to locality.
The Energy Information Administration (EIA) publishes a list of prices for residential consumers. This list can be found on its website. The agency expects the average residential price to reach $0.1524 per kilowatt-hour by 2023. The agency predicts that the average price for residential consumers will increase by 3.3% in the next year.
The price of electricity for industrial and commercial customers may vary as well. Some states, including Hawaii and Texas, have some of the highest electricity prices in the nation.
Typically, the price for retail electricity is based on a fixed-rate contract. But it can also be adjusted according to spot prices. However, variable agreements can be challenging to follow.
The price of electricity in New York is comparable to the most expensive states. While the state has a higher average price than the rest of the Northeast, it is still comparatively lower than the national average.
Impact on productivity
Electricity is a crucial input to production. But its impact on productivity needs to be clarified. Researchers have studied its effect on productivity in a variety of settings. Some studies found a direct positive impact, while others reported no such thing.
Several factors affect the impact of electricity on productivity. Among them, the timing of reforms is essential. Firms need to see governments commit to removing outages. This will create an incentive for more firms to use electricity-using technologies. In addition, a successful adoption involves business process changes.
Power supply in developing countries could be more efficient and reliable. Developing countries often need a robust privatization policy to help improve power infrastructure. These problems hurt productivity.
A range of empirical studies has explored the effects of inadequate power supply. Inadequacy is often attributed to ineffective public investment and corruption. However, nature-related factors also play a part.
Power outages are widespread in the Middle East and North Africa (MENA). However, they are much less prevalent in other geo-economic regions.
Impact on quality of life
In the modern developed world, energy choices affect the quality of life. These choices affect economic security, work productivity, and leisure time. They also have an impact on environmental degradation and climate change. Without reliable, affordable energy, the modern developed world would be different.
During the past century, development has depended on increasing energy availability. Specifically, increased access to cheap, reliable, and high-quality energy services have allowed life-long technologies to be created and used. However, the distribution of these services has often been uneven.
While some studies look at energy and quality of life as separate concepts, many organizations use a variety of domains to assess their impact. The European Commission, for example, is currently publishing a series of discussion papers. One study compares the experiences of households living in villages that have electricity and those that do not. This study addresses how energy affects health, occupational health, and climate change.