The United States has long been accused of being energy inefficient based on a comparison of energy intensities among the industrialized countries. Energy intensity is commonly measured by computing the ratio of energy use per unit of Gross Domestic Product (GDP). This is not a true measure of efficiency, however, because it does not account for differences in the standard of living, differences in population densities, or other factors. After corrections are made to account for these factors, the United States often appears to be as efficient or more efficient than many of the other industrialized countries. In this analysis the industrialized economies considered are the Group of Seven (G7): the United States, Canada, Japan, France, Italy, West Germany, and the United Kingdom. In summary, since 1970 the United States has improved the efficiency of energy use as much or more than have the other G-7 countries. Frequently, the United States is more efficient in its use of energy than are other G-7 countries. Many of the differences in energy use result from the fact that the United States has the comparative advantage of abundant indigenous energy supplies which have been used to develop large energy intensive but not necessarily inefficient petrochemical, and primary metals industries. The United States continues to hold this advantage, producing 50 percent more energy in 1988 than did all the remaining G-7 countries combined. 12 figs.
