KAPSARC – Energy Efficiency, Sep 2025

The main topic of the report concerns energy efficiency and the challenges associated with measuring it at a macroeconomic level.

The document argues that the traditional measure of energy intensity (the amount of energy used per unit of economic output) is an inaccurate indicator of energy efficiency. Using energy intensity as a metric can lead to unfair assessments, especially when comparing countries with different economic structures. Reliable indicators are needed to track energy use, develop effective regulations, improve energy efficiency, and assess progress. These indicators also support realistic goal setting and compliance with climate agreements such as the Paris Agreement.