Washington's Energy Indicators

5.  Washington’s Energy Intensity — Energy Consumption per Dollar of GSP

Data Note: Irregularities in 1983 and 1992 are caused by volatility in certain petroleum fuels, particularly residual fuel, which is often purchased in bulk and used over longer periods of time.

WASHINGTON CONTINUES TO PRODUCE MORE GOODS AND SERVICES PER UNIT OF ENERGY CONSUMED, DESPITE GROWTH IN TOTAL ENERGY CONSUMPTION. KEY REASONS ARE A SHIFT IN THE STATE'S ECONOMY TO LESS ENERGY-INTENSIVE INDUSTRIES AND IMPROVED PROCESS EFFICIENCY.

This report presents several measures of Washington’s energy intensity, the extent to which the state relies on energy to fuel its economy and meet its everyday needs. The first measures the energy intensity of Washington’s economy, by depicting the amount of energy we use to produce a dollar's worth of economic output. Washington energy consumption is divided by Gross State Product (GSP), the sum of all goods and services produced in the state, and the result is indexed so that the value in 1980 is equal to 1. Despite the rapid increase in Washington’s total energy consumption between 1980 and 1995, energy consumption per dollar of GSP declined by 17 percent over the period.

Washington’s economy is growing faster than its energy consumption, and has been since at least 1977, when the Gross State Product data series we use begins. This is due to a number of factors, chief among them a shift in the state’s economy from its resource and manufacturing base to software, biotech, and other, less energy intensive industries. Gains in energy efficiency have also contributed.

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