Stochastic Trend
David Stern's Blog on Energy, the Environment, Economics, and the Science of Science
Sunday, October 25, 2009
Energy Intensity Again
There is a stronger relationship between energy intensity of GDP and GDP per capita when you plot both of them using ordinary exchange rates
rather than purchasing power parity adjusted exchange rates
:
I think that the relationship is mainly due to the tendency for currencies to overvalued relative to purchasing power parity in most wealthy countries and the reverse in poor countries rather than any real energy related behavior.
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