On Energy Efficiency in the Context of Macroeconomic Performance

Abstract

The significance of energy in driving economic growth is crucial within the framework of supply and demand dynamics. The significance of this stems from the energy sector's consistent interconnection with other economic sectors. Energy is a crucial determinant in the process of production. Additionally, it serves as a crucial asset for enhancing the economic well-being of nations. Energy is a crucial component of sustainable development and exerts significant influence in global politics, shaping the developmental status of nations. The energy demand of countries worldwide is indicative of their level of development. Industrialized nations place significant emphasis on this matter, particularly with their demand for affordable and high-intensity energy. The notion of energy efficiency and savings has arisen in tandem with the recognition that resources are finite and global economic activity is expanding. This study has examined the energy gap and the potential consequences of foreign dependency and unpredictable economic growth, specifically in relation to energy efficiency. After conducting an extensive review of the literature, the significance of the energy gap in the overall external output has been emphasized. The emphasis is placed on the notion of efficiency in the energy industry, which is regarded as one of the most efficient methods to decrease this ratio. The study received funding from the World Bank database, specifically utilizing data on energy efficiency and intensity. It was emphasized that the energy gap's external gaps might be diminished to acceptable levels by enhancing efficiency, hence promoting stable growth.