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Urbanization and Energy Use In Economic Development

Abstract:
Urbanization and industrialization are the most prom inentfeatures of economic development. The energy use changes brought by industrialization are well known, but urbanization also imposes major, if subtle, changes in energy use. Urbanization shifts production activities formerly undertaken in the home with little or no energy to outside producers who do use energy. One of the largest changes is the daily travel of urban residents, primarily but not exclusively, to work Personal transportation in rural areas generally entails little or no fuel use, while urban transportation does, particularly as incomes increase. Higher density living also induces substitutions of modern for traditional energy forms. Finally, food must be transported longer distances to urban consumers than to rural, agricultural consumers.

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Energy Specializations: Energy and the Economy –Economic Growth and Energy Demand; Energy and the Economy – Resource Endowments and Economic Performance

JEL Codes:
O13 - Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Q34 - Natural Resources and Domestic and International Conflicts

Keywords: Urbanization, Industrialization, Developing countries, GDP

DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No4-3


Published in Volume 10, Number 4 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.