Environmental Trends 2002

Economy

Conventional Energy Consumption and Intensity (Indexed 1981 =1)

SOURCES: Ministry of Water, Land and Air Protection, 2001; Statistics Canada (CANSIM - Canadian Socio-economic Information Database), 2001; and BC Stats (BC Economic Accounts), 2001. NOTES: The indicator is based on economy-wide energy consumption and GDP data. The estimates of conventional energy intensity must be interpreted carefully because terms such as "conventional", "alternative" and "green" energy are not consistently defined. In addition, no adjustment has been made to account for factors that are not related to energy used for economic activity that affect the estimates. The link between energy intensity and the associated environmental impacts must also be interpreted carefully because different types of energy have different environmental impacts.

Status and trends in intensity of conventional energy use

• Economic activity uses energy and energy use has environmental impacts. Therefore, estimating the amount of conventional energy consumed per unit of Gross Domestic Product (GDP) is used as an indicator of how much impact economic activity has on the environment. (Conventional energy sources include fossil fuels and large hydroelectric sources and exclude alternative energy sources such as wind and solar.)

• From 1981 to 1999, a 53% increase in GDP in British Columbia was achieved while energy use from conventional sources increased by only 26%. This means that the intensity of conventional energy use has declined by 18% over that time.

• These results are due to a combination of factors, including a shift in the structure of the economy towards less energy-intensive sectors (e.g., knowledge-based, service, tourism), increased energy efficiency of existing activities, and a larger amount of energy consumption from alternative energy sources. Other factors that are not related to energy intensity, such as weather, also affect the energy/GDP ratio and have not been accounted for in the indicator.

Why is it important?

• The production, transportation, transmission and use of conventional energy have impacts on the environment, including the emission of greenhouse gases and atmospheric pollutants through the combustion of fossil fuels and flooding of lands for large hydroelectric sources. These impacts can be reduced by decreasing energy consumption, by using energy more efficiently and by developing alternative energy sources that are less stressful on the environment.

What is being done?

• Since the 1980s there have been extensive campaigns in British Columbia to encourage energy conservation through increased energy efficiency of appliances and buildings, and use of more environmentally friendly modes of transportation.

• BC Hydro plans to add new "green" energy technologies to meet 10 percent of its load growth over the next 10 years. Plans are to start operating a demonstration project on Vancouver Island using wind, micro hydro and ocean wave energy between 2003 and 2004.

• An energy policy framework is being developed for British Columbia. It will include specific reference to environmentally sound energy supplies, including developing alternative energy sources.

For detailed information, including graph data, see In-Depth report [pdf].