Tuesday, August 28, 2007

GPD growth vs Electricity growth

Traditional economy growth is manufacture based industrial growth, which is heavily depending on energy supply. So in traditional industrial economy, electricity growth is often highly correlated to GPD growth.

However, in today IT age, service oriented economy will not demand too much energy since a faster runing computer might need actually less energy than old vacuum electronic tubes computer. An economy based on tourism will not demand tromendous increase of energy either. In IT age, increased productivity often end up with less energy usage.

So old model of Electricity growth correlation with GPD will not apply in information technology based economy.

Who dares to chanllenge conventional view or genius could become anothergenius.