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46564 | How much energy do countries consume when we take offshoring into account? | energy-offshoring | post | publish | <!-- wp:html --> <div class="blog-info"> <p>Our World in Data presents the data and research to make progress against the world’s largest problems.<br>This article draws on data and research discussed in our entry on <strong><a href="https://ourworldindata.org/energy" target="_blank" rel="noopener">Energy</a></strong>.</p> <p>Many thanks to <a href="https://esd.ifu.ethz.ch/the-group/people/person-detail.MjY1MDUz.TGlzdC8xMjMzLC04MTk0OTI4NzQ=.html">Dr Viktoras Kulionis</a> for providing the raw data on consumption-based energy use for this article.</p> </div> <!-- /wp:html --> <!-- wp:paragraph --> <p>Think about how much energy you use. Some common things come to mind: electricity to keep the lights on; heating to warm your home; the car or bus you might take to get to work.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>But there’s also the energy needed to <em>produce</em> the goods we buy in the first place. Sometimes these goods are produced in our own country – and so that energy is reported in our country’s energy use data. But when we buy goods from overseas, this energy is included in <em>their</em> accounts. It’s missing from ours.{ref}When the UK reports how much energy is consumed in the UK, it’s reporting how much electricity, heating and transport its citizens use domestically. It’s not counting the energy embedded in goods it buys from overseas.{/ref}</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>When we compare energy use across the world we rarely adjust for the energy embedded in imports. But what happens when we do? What difference does it make to our energy footprint?</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":3} --> <h3>Which countries are exporters and importers of embodied energy?</h3> <!-- /wp:heading --> <!-- wp:columns --> <div class="wp-block-columns"><!-- wp:column --> <div class="wp-block-column"><!-- wp:paragraph --> <p>We can calculate how countries’ energy footprint changes once we adjust for traded goods. To do this we take a country’s domestic energy use – its <strong>production-based energy use</strong>. We then subtract the energy used to produce things that it <em>exports</em>, and add energy used to produce things it <em>imports</em>. The number we’re left with is its <strong>consumption-based energy use.</strong></p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Researcher <a href="https://baug.ethz.ch/en/department/people/staff/personen-detail.MjY1MDUz.TGlzdC82NzksLTU1NTc1NDEwMQ==.html">Viktoras Kulionis</a> calculated this for all the countries with sufficient trade data available.{ref}This consumption-based (trade-adjusted) energy use can be calculated from data published in the EXIOBASE v3.8.2 database using a multi-regional input-output (MRIO) model.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>This MRIO model uses data on the quantity of goods traded, and the country-specific energy intensity of producing those goods to estimate the amount of energy embodied in exported goods, and in imported goods.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Consumption-based (trade-adjusted) energy use is then calculated as domestic energy use minus energy embodied in exported goods, plus imported goods.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>The EXIOBASE v3.8.2 database is available online here: <a href="https://zenodo.org/record/5589597#.YYf3EdnMK_0.%7B/ref">https://zenodo.org/record/5589597#.YYf3EdnMK_0.</a>{/ref} Unfortunately the detailed trade data that is needed is not available for many smaller economies. This means that most low-income countries are missing.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>In the map we see what countries are net importers and exporters of energy. Net importers are shown in red, and given as positive values. Net exports are in blue, as negative values.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>I’ve calculated this energy embedded in trade as a share of each country’s domestic energy. So, Germany had a value of +15% in 2020. This means that its consumption-based energy use is 15% higher than its domestic energy use.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>A fairly distinct global pattern emerges. Most of Europe – particularly Western and Southern Europe – and the United States are net <em>importers </em>of embodied energy. The average across these countries is that their net ‘offshoring’ is around 10-15% of domestic energy. This is less than many would assume. Low-to-middle income countries – China, India, Brazil, South Africa – are then net <em>exporters</em> of embodied energy.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Because energy use is the main driver of greenhouse gas emissions, we also see this pattern for carbon dioxide <a href="https://ourworldindata.org/grapher/share-co2-embedded-in-trade">emissions embedded</a> in trade.</p> <!-- /wp:paragraph --></div> <!-- /wp:column --> <!-- wp:column --> <div class="wp-block-column"><!-- wp:html --> <iframe src="https://ourworldindata.org/grapher/traded-energy-share-domestic?country=CHN~ZAF~IND~USA~GBR~ESP" loading="lazy" style="width: 100%; height: 600px; border: 0px none;"></iframe> <!-- /wp:html --> <!-- wp:heading {"level":5} --> <h5>Related chart</h5> <!-- /wp:heading --> <!-- wp:owid/prominent-link {"title":"Net energy embedded in traded goods","linkUrl":"https://ourworldindata.org/grapher/energy-embedded-traded-goods","className":"is-style-thin"} /--></div> <!-- /wp:column --></div> <!-- /wp:columns --> <!-- wp:heading {"level":3} --> <h3>How do production-based and consumption-based energy trends compare?</h3> <!-- /wp:heading --> <!-- wp:columns --> <div class="wp-block-columns"><!-- wp:column --> <div class="wp-block-column"><!-- wp:paragraph --> <p>Let’s then look at the difference between production-based energy consumption, and how this looks after adjusting for trade (consumption-based). In the chart we see both metrics for Germany. In the previous map we saw that in 2020, Germany’s net trade of energy was equal to 15% of its domestic use. This tallies with what we see here: consumption-based energy use is 15% higher than production-based.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>We can also see how this gap has changed over time. For Germany, it hasn’t changed much. This highlights an important point: many countries <a href="https://ourworldindata.org/grapher/energy-use-gdp-decoupling?country=~SWE">have managed to</a> grow their economies without increasing energy use. As the consumption-based numbers show, this is not because they’re offloading manufacturing overseas. Consumption-based energy is also pretty flat.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>You can explore this data for other countries using the “Change country” button on the interactive chart. If you switch to China, India, South Africa, or Brazil, for example, you will see that they are the opposite of Germany: production-based energy is <em>higher</em> than consumption-based because they are net <em>exporters</em>.</p> <!-- /wp:paragraph --></div> <!-- /wp:column --> <!-- wp:column --> <div class="wp-block-column"><!-- wp:html --> <iframe src="https://ourworldindata.org/grapher/production-vs-consumption-energy?country=~DEU" loading="lazy" style="width: 100%; height: 600px; border: 0px none;"></iframe> <!-- /wp:html --> <!-- wp:heading {"level":5} --> <h5>Related charts</h5> <!-- /wp:heading --> <!-- wp:owid/prominent-link {"title":"Production- vs. consumption-based energy use per person","linkUrl":"https://ourworldindata.org/grapher/production-consumption-energy-per-person","className":"is-style-thin"} /--> <!-- wp:owid/prominent-link {"title":"Consumption-based energy intensity (energy per unit of GDP)","linkUrl":"https://ourworldindata.org/grapher/consumption-energy-intensity","className":"is-style-thin"} /--></div> <!-- /wp:column --></div> <!-- /wp:columns --> <!-- wp:heading {"level":3} --> <h3>Where do people consume the most energy, after trade?</h3> <!-- /wp:heading --> <!-- wp:columns --> <div class="wp-block-columns"><!-- wp:column --> <div class="wp-block-column"><!-- wp:paragraph --> <p>What does this mean for you and I? How does the energy footprint of people across the world compare when we take account of all of the things we buy and consume?</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>In the charts we see consumption-based energy use per person across countries – first as a map, and then as a bar chart.{ref}This is measured as the average energy use per year. I’ve calculated this by taking the total consumption-based energy use for each country and dividing by the total population. Population data comes from the <a href="https://population.un.org/wpp/">UN World Population Prospects</a>.{/ref} </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Unsurprisingly there are very large differences across the world. The average American consumes almost ten times as much energy as the average Indian. This doesn’t even include the world’s poorest countries. If they were included we’d see differences of at least 100-fold, if not more.{ref}We know this because when we look at <a href="https://ourworldindata.org/explorers/energy?facet=none&country=USA~GBR~CHN~OWID_WRL~IND~BRA~ZAF&Total+or+Breakdown=Total&Energy+or+Electricity=Primary+energy&Metric=Per+capita+consumption"><em>production-based</em> electricity or energy use</a>, the differences can be as large as 1000-fold.{/ref}</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>We expect this gulf between rich and poor countries. But what is surprising is the differences <em>between</em> rich countries. Average standards of living are high in both the US and the UK. Yet the average American consumes more than twice the energy of the average Brit. Highlighting these differences could help us to develop economies, infrastructure, housing and transport networks that maintain a high standard of living in an energy-efficient way.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>There’s another insight that goes against many people’s intuitions. Many middle-income countries consume a surprisingly large amount of energy per person. There’s a popular narrative that China has high energy consumption and CO₂ emissions because it produces so many goods for the rest of the world. This was true a decade ago – in 2007, China’s net exported energy <a href="https://ourworldindata.org/grapher/traded-energy-share-domestic?tab=chart&country=~CHN">was equivalent to</a> 20% of its domestic energy use. But things are changing: in 2020 this was just 5%. The average person in China now consumes about the same amount of energy as the Spaniards or Portuguese.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Many manufacturing economies are emerging with high standards of living. Their energy footprints are a reflection of this.</p> <!-- /wp:paragraph --></div> <!-- /wp:column --> <!-- wp:column --> <div class="wp-block-column"></div> <!-- /wp:column --></div> <!-- /wp:columns --> <!-- wp:columns {"className":"is-style-side-by-side"} --> <div class="wp-block-columns is-style-side-by-side"><!-- wp:column --> <div class="wp-block-column"><!-- wp:html --> <iframe src="https://ourworldindata.org/grapher/consumption-based-energy-per-capita?country=CHN~TUR~JPN~USA~GBR~IND~ZAF~AUS~BRA~DEU~FRA~SWE~ESP~KOR~NOR~MEX" loading="lazy" style="width: 100%; height: 600px; border: 0px none;"></iframe> <!-- /wp:html --></div> <!-- /wp:column --> <!-- wp:column --> <div class="wp-block-column"><!-- wp:html --> <iframe src="https://ourworldindata.org/grapher/consumption-based-energy-per-capita?tab=chart&country=CHN~TUR~JPN~USA~GBR~IND~ZAF~AUS~BRA~DEU~FRA~SWE~ESP~KOR~NOR~MEX" loading="lazy" style="width: 100%; height: 600px; border: 0px none;"></iframe> <!-- /wp:html --></div> <!-- /wp:column --></div> <!-- /wp:columns --> <!-- wp:separator --> <hr class="wp-block-separator"/> <!-- /wp:separator --> <!-- wp:heading {"level":4} --> <h4>Related</h4> <!-- /wp:heading --> <!-- wp:owid/prominent-link {"title":"","linkUrl":"https://ourworldindata.org/energy-gdp-decoupling","className":"is-style-thin"} /--> <!-- wp:owid/prominent-link {"title":"","linkUrl":"https://ourworldindata.org/energy-poverty-air-pollution","className":"is-style-thin"} /--> <!-- wp:owid/prominent-link {"title":"","linkUrl":"https://ourworldindata.org/energy","className":"is-style-thin"} /--> | { "id": "wp-46564", "slug": "energy-offshoring", "content": { "toc": [], "body": [ { "type": "text", "value": [ { "text": "Our World in Data presents the data and research to make progress against the world\u2019s largest problems.", "spanType": "span-simple-text" }, { "spanType": "span-newline" }, { "text": "This article draws on data and research discussed in our entry on ", "spanType": "span-simple-text" }, { "children": [ { "url": "https://ourworldindata.org/energy", "children": [ { "text": "Energy", "spanType": "span-simple-text" } ], "spanType": "span-link" } ], "spanType": "span-bold" }, { "text": ".", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "Many thanks to ", "spanType": "span-simple-text" }, { "url": "https://esd.ifu.ethz.ch/the-group/people/person-detail.MjY1MDUz.TGlzdC8xMjMzLC04MTk0OTI4NzQ=.html", "children": [ { "text": "Dr Viktoras Kulionis", "spanType": "span-simple-text" } ], "spanType": "span-link" }, { "text": " for providing the raw data on consumption-based energy use for this article.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "Think about how much energy you use. Some common things come to mind: electricity to keep the lights on; heating to warm your home; the car or bus you might take to get to work.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "But there\u2019s also the energy needed to ", "spanType": "span-simple-text" }, { "children": [ { "text": "produce", "spanType": "span-simple-text" } ], "spanType": "span-italic" }, { "text": " the goods we buy in the first place. Sometimes these goods are produced in our own country \u2013 and so that energy is reported in our country\u2019s energy use data. But when we buy goods from overseas, this energy is included in ", "spanType": "span-simple-text" }, { "children": [ { "text": "their", "spanType": "span-simple-text" } ], "spanType": "span-italic" }, { "text": " accounts. It\u2019s missing from ours.{ref}When the UK reports how much energy is consumed in the UK, it\u2019s reporting how much electricity, heating and transport its citizens use domestically. It\u2019s not counting the energy embedded in goods it buys from overseas.{/ref}", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "When we compare energy use across the world we rarely adjust for the energy embedded in imports. But what happens when we do? What difference does it make to our energy footprint?", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "text": [ { "text": "Which countries are exporters and importers of embodied energy?", "spanType": "span-simple-text" } ], "type": "heading", "level": 2, "parseErrors": [] }, { "left": [ { "type": "text", "value": [ { "text": "We can calculate how countries\u2019 energy footprint changes once we adjust for traded goods. To do this we take a country\u2019s domestic energy use \u2013 its ", "spanType": "span-simple-text" }, { "children": [ { "text": "production-based energy use", "spanType": "span-simple-text" } ], "spanType": "span-bold" }, { "text": ". We then subtract the energy used to produce things that it ", "spanType": "span-simple-text" }, { "children": [ { "text": "exports", "spanType": "span-simple-text" } ], "spanType": "span-italic" }, { "text": ", and add energy used to produce things it ", "spanType": "span-simple-text" }, { "children": [ { "text": "imports", "spanType": "span-simple-text" } ], "spanType": "span-italic" }, { "text": ". The number we\u2019re left with is its ", "spanType": "span-simple-text" }, { "children": [ { "text": "consumption-based energy use.", "spanType": "span-simple-text" } ], "spanType": "span-bold" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "Researcher ", "spanType": "span-simple-text" }, { "url": "https://baug.ethz.ch/en/department/people/staff/personen-detail.MjY1MDUz.TGlzdC82NzksLTU1NTc1NDEwMQ==.html", "children": [ { "text": "Viktoras Kulionis", "spanType": "span-simple-text" } ], "spanType": "span-link" }, { "text": " calculated this for all the countries with sufficient trade data available.{ref}This consumption-based (trade-adjusted) energy use can be calculated from data published in the EXIOBASE v3.8.2 database using a multi-regional input-output (MRIO) model.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "This MRIO model uses data on the quantity of goods traded, and the country-specific energy intensity of producing those goods to estimate the amount of energy embodied in exported goods, and in imported goods.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "Consumption-based (trade-adjusted) energy use is then calculated as domestic energy use minus energy embodied in exported goods, plus imported goods.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "The EXIOBASE v3.8.2 database is available online here: ", "spanType": "span-simple-text" }, { "url": "https://zenodo.org/record/5589597#.YYf3EdnMK_0.%7B/ref", "children": [ { "text": "https://zenodo.org/record/5589597#.YYf3EdnMK_0.", "spanType": "span-simple-text" } ], "spanType": "span-link" }, { "text": "{/ref} Unfortunately the detailed trade data that is needed is not available for many smaller economies. This means that most low-income countries are missing.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "In the map we see what countries are net importers and exporters of energy. Net importers are shown in red, and given as positive values. Net exports are in blue, as negative values.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "I\u2019ve calculated this energy embedded in trade as a share of each country\u2019s domestic energy. So, Germany had a value of +15% in 2020. This means that its consumption-based energy use is 15% higher than its domestic energy use.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "A fairly distinct global pattern emerges. Most of Europe \u2013 particularly Western and Southern Europe \u2013 and the United States are net ", "spanType": "span-simple-text" }, { "children": [ { "text": "importers ", "spanType": "span-simple-text" } ], "spanType": "span-italic" }, { "text": "of embodied energy. The average across these countries is that their net \u2018offshoring\u2019 is around 10-15% of domestic energy. This is less than many would assume. Low-to-middle income countries \u2013 China, India, Brazil, South Africa \u2013 are then net ", "spanType": "span-simple-text" }, { "children": [ { "text": "exporters", "spanType": "span-simple-text" } ], "spanType": "span-italic" }, { "text": " of embodied energy.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "Because energy use is the main driver of greenhouse gas emissions, we also see this pattern for carbon dioxide ", "spanType": "span-simple-text" }, { "url": "https://ourworldindata.org/grapher/share-co2-embedded-in-trade", "children": [ { "text": "emissions embedded", "spanType": "span-simple-text" } ], "spanType": "span-link" }, { "text": " in trade.", "spanType": "span-simple-text" } ], "parseErrors": [] } ], "type": "sticky-right", "right": [ { "url": "https://ourworldindata.org/grapher/traded-energy-share-domestic?country=CHN~ZAF~IND~USA~GBR~ESP", "type": "chart", "parseErrors": [] }, { "text": [ { "text": "Related chart", "spanType": "span-simple-text" } ], "type": "heading", "level": 5, "parseErrors": [] }, { "url": "https://ourworldindata.org/grapher/energy-embedded-traded-goods", "type": "prominent-link", "title": "Net energy embedded in traded goods", "description": "", "parseErrors": [] } ], "parseErrors": [] }, { "text": [ { "text": "How do production-based and consumption-based energy trends compare?", "spanType": "span-simple-text" } ], "type": "heading", "level": 2, "parseErrors": [] }, { "left": [ { "type": "text", "value": [ { "text": "Let\u2019s then look at the difference between production-based energy consumption, and how this looks after adjusting for trade (consumption-based). In the chart we see both metrics for Germany. In the previous map we saw that in 2020, Germany\u2019s net trade of energy was equal to 15% of its domestic use. This tallies with what we see here: consumption-based energy use is 15% higher than production-based.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "We can also see how this gap has changed over time. For Germany, it hasn\u2019t changed much. This highlights an important point: many countries ", "spanType": "span-simple-text" }, { "url": "https://ourworldindata.org/grapher/energy-use-gdp-decoupling?country=~SWE", "children": [ { "text": "have managed to", "spanType": "span-simple-text" } ], "spanType": "span-link" }, { "text": " grow their economies without increasing energy use. As the consumption-based numbers show, this is not because they\u2019re offloading manufacturing overseas. Consumption-based energy is also pretty flat.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "You can explore this data for other countries using the \u201cChange country\u201d button on the interactive chart. If you switch to China, India, South Africa, or Brazil, for example, you will see that they are the opposite of Germany: production-based energy is ", "spanType": "span-simple-text" }, { "children": [ { "text": "higher", "spanType": "span-simple-text" } ], "spanType": "span-italic" }, { "text": " than consumption-based because they are net ", "spanType": "span-simple-text" }, { "children": [ { "text": "exporters", "spanType": "span-simple-text" } ], "spanType": "span-italic" }, { "text": ".", "spanType": "span-simple-text" } ], "parseErrors": [] } ], "type": "sticky-right", "right": [ { "url": "https://ourworldindata.org/grapher/production-vs-consumption-energy?country=~DEU", "type": "chart", "parseErrors": [] }, { "text": [ { "text": "Related charts", "spanType": "span-simple-text" } ], "type": "heading", "level": 5, "parseErrors": [] }, { "url": "https://ourworldindata.org/grapher/production-consumption-energy-per-person", "type": "prominent-link", "title": "Production- vs. consumption-based energy use per person", "description": "", "parseErrors": [] }, { "url": "https://ourworldindata.org/grapher/consumption-energy-intensity", "type": "prominent-link", "title": "Consumption-based energy intensity (energy per unit of GDP)", "description": "", "parseErrors": [] } ], "parseErrors": [] }, { "text": [ { "text": "Where do people consume the most energy, after trade?", "spanType": "span-simple-text" } ], "type": "heading", "level": 2, "parseErrors": [] }, { "type": "text", "value": [ { "text": "What does this mean for you and I? How does the energy footprint of people across the world compare when we take account of all of the things we buy and consume?", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "In the charts we see consumption-based energy use per person across countries \u2013 first as a map, and then as a bar chart.{ref}This is measured as the average energy use per year. I\u2019ve calculated this by taking the total consumption-based energy use for each country and dividing by the total population. Population data comes from the ", "spanType": "span-simple-text" }, { "url": "https://population.un.org/wpp/", "children": [ { "text": "UN World Population Prospects", "spanType": "span-simple-text" } ], "spanType": "span-link" }, { "text": ".{/ref}\u00a0", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "Unsurprisingly there are very large differences across the world. The average American consumes almost ten times as much energy as the average Indian. This doesn\u2019t even include the world\u2019s poorest countries. If they were included we\u2019d see differences of at least 100-fold, if not more.{ref}We know this because when we look at ", "spanType": "span-simple-text" }, { "url": "https://ourworldindata.org/explorers/energy?facet=none&country=USA~GBR~CHN~OWID_WRL~IND~BRA~ZAF&Total+or+Breakdown=Total&Energy+or+Electricity=Primary+energy&Metric=Per+capita+consumption", "children": [ { "children": [ { "text": "production-based", "spanType": "span-simple-text" } ], "spanType": "span-italic" }, { "text": " electricity or energy use", "spanType": "span-simple-text" } ], "spanType": "span-link" }, { "text": ", the differences can be as large as 1000-fold.{/ref}", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "We expect this gulf between rich and poor countries. But what is surprising is the differences ", "spanType": "span-simple-text" }, { "children": [ { "text": "between", "spanType": "span-simple-text" } ], "spanType": "span-italic" }, { "text": " rich countries. Average standards of living are high in both the US and the UK. Yet the average American consumes more than twice the energy of the average Brit. Highlighting these differences could help us to develop economies, infrastructure, housing and transport networks that maintain a high standard of living in an energy-efficient way.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "There\u2019s another insight that goes against many people\u2019s intuitions. Many middle-income countries consume a surprisingly large amount of energy per person. There\u2019s a popular narrative that China has high energy consumption and CO\u2082 emissions because it produces so many goods for the rest of the world. This was true a decade ago \u2013 in 2007, China\u2019s net exported energy ", "spanType": "span-simple-text" }, { "url": "https://ourworldindata.org/grapher/traded-energy-share-domestic?tab=chart&country=~CHN", "children": [ { "text": "was equivalent to", "spanType": "span-simple-text" } ], "spanType": "span-link" }, { "text": " 20% of its domestic energy use. But things are changing: in 2020 this was just 5%. The average person in China now consumes about the same amount of energy as the Spaniards or Portuguese.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "type": "text", "value": [ { "text": "Many manufacturing economies are emerging with high standards of living. Their energy footprints are a reflection of this.", "spanType": "span-simple-text" } ], "parseErrors": [] }, { "left": [ { "url": "https://ourworldindata.org/grapher/consumption-based-energy-per-capita?country=CHN~TUR~JPN~USA~GBR~IND~ZAF~AUS~BRA~DEU~FRA~SWE~ESP~KOR~NOR~MEX", "type": "chart", "parseErrors": [] } ], "type": "sticky-right", "right": [ { "url": "https://ourworldindata.org/grapher/consumption-based-energy-per-capita?tab=chart&country=CHN~TUR~JPN~USA~GBR~IND~ZAF~AUS~BRA~DEU~FRA~SWE~ESP~KOR~NOR~MEX", "type": "chart", "parseErrors": [] } ], "parseErrors": [] }, { "text": [ { "text": "Related", "spanType": "span-simple-text" } ], "type": "heading", "level": 3, "parseErrors": [] }, { "url": "https://ourworldindata.org/energy-gdp-decoupling", "type": "prominent-link", "title": "", "description": "", "parseErrors": [] }, { "url": "https://ourworldindata.org/energy-poverty-air-pollution", "type": "prominent-link", "title": "", "description": "", "parseErrors": [] }, { "url": "https://ourworldindata.org/energy", "type": "prominent-link", "title": "", "description": "", "parseErrors": [] } ], "type": "article", "title": "How much energy do countries consume when we take offshoring into account?", "authors": [ "Hannah Ritchie" ], "excerpt": "How do energy footprints compare across the world when we adjust for the goods that we import from overseas?", "dateline": "December 7, 2021", "subtitle": "How do energy footprints compare across the world when we adjust for the goods that we import from overseas?", "sidebar-toc": false, "featured-image": "energy-offshoring-thumbnail.png" }, "createdAt": "2021-11-29T16:19:41.000Z", "published": false, "updatedAt": "2022-02-18T11:10:45.000Z", "revisionId": null, "publishedAt": "2021-12-07T10:30:00.000Z", "relatedCharts": [], "publicationContext": "listed" } |
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2021-12-07 10:30:00 | 2024-02-16 14:22:52 | 1c8-OB2nfNAO3jWHArD6s3_OTRZ--rFsswmdRIfx3nSQ | [ "Hannah Ritchie" ] |
How do energy footprints compare across the world when we adjust for the goods that we import from overseas? | 2021-11-29 16:19:41 | 2022-02-18 11:10:45 | https://ourworldindata.org/wp-content/uploads/2021/11/energy-offshoring-thumbnail.png | {} |
Our World in Data presents the data and research to make progress against the world’s largest problems. This article draws on data and research discussed in our entry on **[Energy](https://ourworldindata.org/energy)**. Many thanks to [Dr Viktoras Kulionis](https://esd.ifu.ethz.ch/the-group/people/person-detail.MjY1MDUz.TGlzdC8xMjMzLC04MTk0OTI4NzQ=.html) for providing the raw data on consumption-based energy use for this article. Think about how much energy you use. Some common things come to mind: electricity to keep the lights on; heating to warm your home; the car or bus you might take to get to work. But there’s also the energy needed to _produce_ the goods we buy in the first place. Sometimes these goods are produced in our own country – and so that energy is reported in our country’s energy use data. But when we buy goods from overseas, this energy is included in _their_ accounts. It’s missing from ours.{ref}When the UK reports how much energy is consumed in the UK, it’s reporting how much electricity, heating and transport its citizens use domestically. It’s not counting the energy embedded in goods it buys from overseas.{/ref} When we compare energy use across the world we rarely adjust for the energy embedded in imports. But what happens when we do? What difference does it make to our energy footprint? ## Which countries are exporters and importers of embodied energy? We can calculate how countries’ energy footprint changes once we adjust for traded goods. To do this we take a country’s domestic energy use – its **production-based energy use**. We then subtract the energy used to produce things that it _exports_, and add energy used to produce things it _imports_. The number we’re left with is its **consumption-based energy use.** Researcher [Viktoras Kulionis](https://baug.ethz.ch/en/department/people/staff/personen-detail.MjY1MDUz.TGlzdC82NzksLTU1NTc1NDEwMQ==.html) calculated this for all the countries with sufficient trade data available.{ref}This consumption-based (trade-adjusted) energy use can be calculated from data published in the EXIOBASE v3.8.2 database using a multi-regional input-output (MRIO) model. This MRIO model uses data on the quantity of goods traded, and the country-specific energy intensity of producing those goods to estimate the amount of energy embodied in exported goods, and in imported goods. Consumption-based (trade-adjusted) energy use is then calculated as domestic energy use minus energy embodied in exported goods, plus imported goods. The EXIOBASE v3.8.2 database is available online here: [https://zenodo.org/record/5589597#.YYf3EdnMK_0.](https://zenodo.org/record/5589597#.YYf3EdnMK_0.%7B/ref){/ref} Unfortunately the detailed trade data that is needed is not available for many smaller economies. This means that most low-income countries are missing. In the map we see what countries are net importers and exporters of energy. Net importers are shown in red, and given as positive values. Net exports are in blue, as negative values. I’ve calculated this energy embedded in trade as a share of each country’s domestic energy. So, Germany had a value of +15% in 2020. This means that its consumption-based energy use is 15% higher than its domestic energy use. A fairly distinct global pattern emerges. Most of Europe – particularly Western and Southern Europe – and the United States are net _importers _of embodied energy. The average across these countries is that their net ‘offshoring’ is around 10-15% of domestic energy. This is less than many would assume. Low-to-middle income countries – China, India, Brazil, South Africa – are then net _exporters_ of embodied energy. Because energy use is the main driver of greenhouse gas emissions, we also see this pattern for carbon dioxide [emissions embedded](https://ourworldindata.org/grapher/share-co2-embedded-in-trade) in trade. <Chart url="https://ourworldindata.org/grapher/traded-energy-share-domestic?country=CHN~ZAF~IND~USA~GBR~ESP"/> ##### Related chart ### Net energy embedded in traded goods https://ourworldindata.org/grapher/energy-embedded-traded-goods ## How do production-based and consumption-based energy trends compare? Let’s then look at the difference between production-based energy consumption, and how this looks after adjusting for trade (consumption-based). In the chart we see both metrics for Germany. In the previous map we saw that in 2020, Germany’s net trade of energy was equal to 15% of its domestic use. This tallies with what we see here: consumption-based energy use is 15% higher than production-based. We can also see how this gap has changed over time. For Germany, it hasn’t changed much. This highlights an important point: many countries [have managed to](https://ourworldindata.org/grapher/energy-use-gdp-decoupling?country=~SWE) grow their economies without increasing energy use. As the consumption-based numbers show, this is not because they’re offloading manufacturing overseas. Consumption-based energy is also pretty flat. You can explore this data for other countries using the “Change country” button on the interactive chart. If you switch to China, India, South Africa, or Brazil, for example, you will see that they are the opposite of Germany: production-based energy is _higher_ than consumption-based because they are net _exporters_. <Chart url="https://ourworldindata.org/grapher/production-vs-consumption-energy?country=~DEU"/> ##### Related charts ### Production- vs. consumption-based energy use per person https://ourworldindata.org/grapher/production-consumption-energy-per-person ### Consumption-based energy intensity (energy per unit of GDP) https://ourworldindata.org/grapher/consumption-energy-intensity ## Where do people consume the most energy, after trade? What does this mean for you and I? How does the energy footprint of people across the world compare when we take account of all of the things we buy and consume? In the charts we see consumption-based energy use per person across countries – first as a map, and then as a bar chart.{ref}This is measured as the average energy use per year. I’ve calculated this by taking the total consumption-based energy use for each country and dividing by the total population. Population data comes from the [UN World Population Prospects](https://population.un.org/wpp/).{/ref} Unsurprisingly there are very large differences across the world. The average American consumes almost ten times as much energy as the average Indian. This doesn’t even include the world’s poorest countries. If they were included we’d see differences of at least 100-fold, if not more.{ref}We know this because when we look at [_production-based_ electricity or energy use](https://ourworldindata.org/explorers/energy?facet=none&country=USA~GBR~CHN~OWID_WRL~IND~BRA~ZAF&Total+or+Breakdown=Total&Energy+or+Electricity=Primary+energy&Metric=Per+capita+consumption), the differences can be as large as 1000-fold.{/ref} We expect this gulf between rich and poor countries. But what is surprising is the differences _between_ rich countries. Average standards of living are high in both the US and the UK. Yet the average American consumes more than twice the energy of the average Brit. Highlighting these differences could help us to develop economies, infrastructure, housing and transport networks that maintain a high standard of living in an energy-efficient way. There’s another insight that goes against many people’s intuitions. Many middle-income countries consume a surprisingly large amount of energy per person. There’s a popular narrative that China has high energy consumption and CO₂ emissions because it produces so many goods for the rest of the world. This was true a decade ago – in 2007, China’s net exported energy [was equivalent to](https://ourworldindata.org/grapher/traded-energy-share-domestic?tab=chart&country=~CHN) 20% of its domestic energy use. But things are changing: in 2020 this was just 5%. The average person in China now consumes about the same amount of energy as the Spaniards or Portuguese. Many manufacturing economies are emerging with high standards of living. Their energy footprints are a reflection of this. <Chart url="https://ourworldindata.org/grapher/consumption-based-energy-per-capita?country=CHN~TUR~JPN~USA~GBR~IND~ZAF~AUS~BRA~DEU~FRA~SWE~ESP~KOR~NOR~MEX"/> <Chart url="https://ourworldindata.org/grapher/consumption-based-energy-per-capita?tab=chart&country=CHN~TUR~JPN~USA~GBR~IND~ZAF~AUS~BRA~DEU~FRA~SWE~ESP~KOR~NOR~MEX"/> ### Related ### https://ourworldindata.org/energy-gdp-decoupling ### https://ourworldindata.org/energy-poverty-air-pollution ### https://ourworldindata.org/energy | { "id": 46564, "date": "2021-12-07T10:30:00", "guid": { "rendered": "https://owid.cloud/?p=46564" }, "link": "https://owid.cloud/energy-offshoring", "meta": { "owid_publication_context_meta_field": { "latest": true, "homepage": true, "immediate_newsletter": true } }, "slug": "energy-offshoring", "tags": [], "type": "post", "title": { "rendered": "How much energy do countries consume when we take offshoring into account?" }, "_links": { "self": [ { "href": "https://owid.cloud/wp-json/wp/v2/posts/46564" } ], "about": [ { "href": "https://owid.cloud/wp-json/wp/v2/types/post" } ], "author": [ { "href": "https://owid.cloud/wp-json/wp/v2/users/17", "embeddable": true } ], "curies": [ { "href": "https://api.w.org/{rel}", "name": "wp", "templated": true } ], "replies": [ { "href": "https://owid.cloud/wp-json/wp/v2/comments?post=46564", "embeddable": true } ], "wp:term": [ { "href": "https://owid.cloud/wp-json/wp/v2/categories?post=46564", "taxonomy": "category", "embeddable": true }, { "href": "https://owid.cloud/wp-json/wp/v2/tags?post=46564", "taxonomy": "post_tag", "embeddable": true } ], "collection": [ { "href": "https://owid.cloud/wp-json/wp/v2/posts" } ], "wp:attachment": [ { "href": "https://owid.cloud/wp-json/wp/v2/media?parent=46564" } ], "version-history": [ { "href": "https://owid.cloud/wp-json/wp/v2/posts/46564/revisions", "count": 9 } ], "wp:featuredmedia": [ { "href": "https://owid.cloud/wp-json/wp/v2/media/46579", "embeddable": true } ], "predecessor-version": [ { "id": 49243, "href": "https://owid.cloud/wp-json/wp/v2/posts/46564/revisions/49243" } ] }, "author": 17, "format": "standard", "status": "publish", "sticky": false, "content": { "rendered": "\n<div class=\"blog-info\">\n<p>Our World in Data presents the data and research to make progress against the world\u2019s largest problems.<br>This article draws on data and research discussed in our entry on <strong><a href=\"https://ourworldindata.org/energy\" target=\"_blank\" rel=\"noopener\">Energy</a></strong>.</p>\n<p>Many thanks to <a href=\"https://esd.ifu.ethz.ch/the-group/people/person-detail.MjY1MDUz.TGlzdC8xMjMzLC04MTk0OTI4NzQ=.html\">Dr Viktoras Kulionis</a> for providing the raw data on consumption-based energy use for this article.</p>\n</div>\n\n\n\n<p>Think about how much energy you use. Some common things come to mind: electricity to keep the lights on; heating to warm your home; the car or bus you might take to get to work.</p>\n\n\n\n<p>But there\u2019s also the energy needed to <em>produce</em> the goods we buy in the first place. Sometimes these goods are produced in our own country \u2013 and so that energy is reported in our country\u2019s energy use data. But when we buy goods from overseas, this energy is included in <em>their</em> accounts. It\u2019s missing from ours.{ref}When the UK reports how much energy is consumed in the UK, it\u2019s reporting how much electricity, heating and transport its citizens use domestically. It\u2019s not counting the energy embedded in goods it buys from overseas.{/ref}</p>\n\n\n\n<p>When we compare energy use across the world we rarely adjust for the energy embedded in imports. But what happens when we do? What difference does it make to our energy footprint?</p>\n\n\n\n<h3>Which countries are exporters and importers of embodied energy?</h3>\n\n\n\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column\">\n<p>We can calculate how countries\u2019 energy footprint changes once we adjust for traded goods. To do this we take a country\u2019s domestic energy use \u2013 its <strong>production-based energy use</strong>. We then subtract the energy used to produce things that it <em>exports</em>, and add energy used to produce things it <em>imports</em>. The number we\u2019re left with is its <strong>consumption-based energy use.</strong></p>\n\n\n\n<p>Researcher <a href=\"https://baug.ethz.ch/en/department/people/staff/personen-detail.MjY1MDUz.TGlzdC82NzksLTU1NTc1NDEwMQ==.html\">Viktoras Kulionis</a> calculated this for all the countries with sufficient trade data available.{ref}This consumption-based (trade-adjusted) energy use can be calculated from data published in the EXIOBASE v3.8.2 database using a multi-regional input-output (MRIO) model.</p>\n\n\n\n<p>This MRIO model uses data on the quantity of goods traded, and the country-specific energy intensity of producing those goods to estimate the amount of energy embodied in exported goods, and in imported goods.</p>\n\n\n\n<p>Consumption-based (trade-adjusted) energy use is then calculated as domestic energy use minus energy embodied in exported goods, plus imported goods.</p>\n\n\n\n<p>The EXIOBASE v3.8.2 database is available online here: <a href=\"https://zenodo.org/record/5589597#.YYf3EdnMK_0.%7B/ref\">https://zenodo.org/record/5589597#.YYf3EdnMK_0.</a>{/ref} Unfortunately the detailed trade data that is needed is not available for many smaller economies. This means that most low-income countries are missing.</p>\n\n\n\n<p>In the map we see what countries are net importers and exporters of energy. Net importers are shown in red, and given as positive values. Net exports are in blue, as negative values.</p>\n\n\n\n<p>I\u2019ve calculated this energy embedded in trade as a share of each country\u2019s domestic energy. So, Germany had a value of +15% in 2020. This means that its consumption-based energy use is 15% higher than its domestic energy use.</p>\n\n\n\n<p>A fairly distinct global pattern emerges. Most of Europe \u2013 particularly Western and Southern Europe \u2013 and the United States are net <em>importers </em>of embodied energy. The average across these countries is that their net \u2018offshoring\u2019 is around 10-15% of domestic energy. This is less than many would assume. Low-to-middle income countries \u2013 China, India, Brazil, South Africa \u2013 are then net <em>exporters</em> of embodied energy.</p>\n\n\n\n<p>Because energy use is the main driver of greenhouse gas emissions, we also see this pattern for carbon dioxide <a href=\"https://ourworldindata.org/grapher/share-co2-embedded-in-trade\">emissions embedded</a> in trade.</p>\n</div>\n\n\n\n<div class=\"wp-block-column\">\n<iframe src=\"https://ourworldindata.org/grapher/traded-energy-share-domestic?country=CHN~ZAF~IND~USA~GBR~ESP\" loading=\"lazy\" style=\"width: 100%; height: 600px; border: 0px none;\"></iframe>\n\n\n\n<h5>Related chart</h5>\n\n\n <block type=\"prominent-link\" style=\"is-style-thin\">\n <link-url>https://ourworldindata.org/grapher/energy-embedded-traded-goods</link-url>\n <title>Net energy embedded in traded goods</title>\n <content></content>\n <figure></figure>\n </block></div>\n</div>\n\n\n\n<h3>How do production-based and consumption-based energy trends compare?</h3>\n\n\n\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column\">\n<p>Let\u2019s then look at the difference between production-based energy consumption, and how this looks after adjusting for trade (consumption-based). In the chart we see both metrics for Germany. In the previous map we saw that in 2020, Germany\u2019s net trade of energy was equal to 15% of its domestic use. This tallies with what we see here: consumption-based energy use is 15% higher than production-based.</p>\n\n\n\n<p>We can also see how this gap has changed over time. For Germany, it hasn\u2019t changed much. This highlights an important point: many countries <a href=\"https://ourworldindata.org/grapher/energy-use-gdp-decoupling?country=~SWE\">have managed to</a> grow their economies without increasing energy use. As the consumption-based numbers show, this is not because they\u2019re offloading manufacturing overseas. Consumption-based energy is also pretty flat.</p>\n\n\n\n<p>You can explore this data for other countries using the \u201cChange country\u201d button on the interactive chart. If you switch to China, India, South Africa, or Brazil, for example, you will see that they are the opposite of Germany: production-based energy is <em>higher</em> than consumption-based because they are net <em>exporters</em>.</p>\n</div>\n\n\n\n<div class=\"wp-block-column\">\n<iframe src=\"https://ourworldindata.org/grapher/production-vs-consumption-energy?country=~DEU\" loading=\"lazy\" style=\"width: 100%; height: 600px; border: 0px none;\"></iframe>\n\n\n\n<h5>Related charts</h5>\n\n\n <block type=\"prominent-link\" style=\"is-style-thin\">\n <link-url>https://ourworldindata.org/grapher/production-consumption-energy-per-person</link-url>\n <title>Production- vs. consumption-based energy use per person</title>\n <content></content>\n <figure></figure>\n </block>\n\n <block type=\"prominent-link\" style=\"is-style-thin\">\n <link-url>https://ourworldindata.org/grapher/consumption-energy-intensity</link-url>\n <title>Consumption-based energy intensity (energy per unit of GDP)</title>\n <content></content>\n <figure></figure>\n </block></div>\n</div>\n\n\n\n<h3>Where do people consume the most energy, after trade?</h3>\n\n\n\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column\">\n<p>What does this mean for you and I? How does the energy footprint of people across the world compare when we take account of all of the things we buy and consume?</p>\n\n\n\n<p>In the charts we see consumption-based energy use per person across countries \u2013 first as a map, and then as a bar chart.{ref}This is measured as the average energy use per year. I\u2019ve calculated this by taking the total consumption-based energy use for each country and dividing by the total population. Population data comes from the <a href=\"https://population.un.org/wpp/\">UN World Population Prospects</a>.{/ref} </p>\n\n\n\n<p>Unsurprisingly there are very large differences across the world. The average American consumes almost ten times as much energy as the average Indian. This doesn\u2019t even include the world\u2019s poorest countries. If they were included we\u2019d see differences of at least 100-fold, if not more.{ref}We know this because when we look at <a href=\"https://ourworldindata.org/explorers/energy?facet=none&country=USA~GBR~CHN~OWID_WRL~IND~BRA~ZAF&Total+or+Breakdown=Total&Energy+or+Electricity=Primary+energy&Metric=Per+capita+consumption\"><em>production-based</em> electricity or energy use</a>, the differences can be as large as 1000-fold.{/ref}</p>\n\n\n\n<p>We expect this gulf between rich and poor countries. But what is surprising is the differences <em>between</em> rich countries. Average standards of living are high in both the US and the UK. Yet the average American consumes more than twice the energy of the average Brit. Highlighting these differences could help us to develop economies, infrastructure, housing and transport networks that maintain a high standard of living in an energy-efficient way.</p>\n\n\n\n<p>There\u2019s another insight that goes against many people\u2019s intuitions. Many middle-income countries consume a surprisingly large amount of energy per person. There\u2019s a popular narrative that China has high energy consumption and CO\u2082 emissions because it produces so many goods for the rest of the world. This was true a decade ago \u2013 in 2007, China\u2019s net exported energy <a href=\"https://ourworldindata.org/grapher/traded-energy-share-domestic?tab=chart&country=~CHN\">was equivalent to</a> 20% of its domestic energy use. But things are changing: in 2020 this was just 5%. The average person in China now consumes about the same amount of energy as the Spaniards or Portuguese.</p>\n\n\n\n<p>Many manufacturing economies are emerging with high standards of living. Their energy footprints are a reflection of this.</p>\n</div>\n\n\n\n<div class=\"wp-block-column\"></div>\n</div>\n\n\n\n<div class=\"wp-block-columns is-style-side-by-side\">\n<div class=\"wp-block-column\">\n<iframe src=\"https://ourworldindata.org/grapher/consumption-based-energy-per-capita?country=CHN~TUR~JPN~USA~GBR~IND~ZAF~AUS~BRA~DEU~FRA~SWE~ESP~KOR~NOR~MEX\" loading=\"lazy\" style=\"width: 100%; height: 600px; border: 0px none;\"></iframe>\n</div>\n\n\n\n<div class=\"wp-block-column\">\n<iframe src=\"https://ourworldindata.org/grapher/consumption-based-energy-per-capita?tab=chart&country=CHN~TUR~JPN~USA~GBR~IND~ZAF~AUS~BRA~DEU~FRA~SWE~ESP~KOR~NOR~MEX\" loading=\"lazy\" style=\"width: 100%; height: 600px; border: 0px none;\"></iframe>\n</div>\n</div>\n\n\n\n<hr class=\"wp-block-separator\"/>\n\n\n\n<h4>Related</h4>\n\n\n <block type=\"prominent-link\" style=\"is-style-thin\">\n <link-url>https://ourworldindata.org/energy-gdp-decoupling</link-url>\n <title></title>\n <content></content>\n <figure></figure>\n </block>\n\n <block type=\"prominent-link\" style=\"is-style-thin\">\n <link-url>https://ourworldindata.org/energy-poverty-air-pollution</link-url>\n <title></title>\n <content></content>\n <figure></figure>\n </block>\n\n <block type=\"prominent-link\" style=\"is-style-thin\">\n <link-url>https://ourworldindata.org/energy</link-url>\n <title></title>\n <content></content>\n <figure></figure>\n </block>", "protected": false }, "excerpt": { "rendered": "How do energy footprints compare across the world when we adjust for the goods that we import from overseas?", "protected": false }, "date_gmt": "2021-12-07T10:30:00", "modified": "2022-02-18T11:10:45", "template": "", "categories": [ 1 ], "ping_status": "closed", "authors_name": [ "Hannah Ritchie" ], "modified_gmt": "2022-02-18T11:10:45", "comment_status": "closed", "featured_media": 46579, "featured_media_paths": { "thumbnail": "/app/uploads/2021/11/energy-offshoring-thumbnail-150x59.png", "medium_large": "/app/uploads/2021/11/energy-offshoring-thumbnail-768x301.png" } } |