Abstract

We analyze data for fourteen foundational European Union Nations covering the period 1960–2000 to estimate the effects of demographic and economic factors on energy consumption. We find that population size and age structure have clear effects on energy consumption. Economic development and urbanization also contribute substantially to changes in energy consumption. We use the resultant model to project energy consumption for the year 2025 based on demographic and economic projections to assess the implications of various demographic scenarios. The projections suggest that the expected decline of population growth in Europe will help curtail expansion in energy consumption.