Using more than 5,167 kilowatt-hours of energy per person actually starts making a society less developed.
April 25, 2026
Original Paper
Energizing societal well-being: the nonlinear relationship between Energy Consumption and Human Development
SSRN · 6636969
The Takeaway
Most economists assume that the more energy a country consumes, the more its people flourish. Data shows an inverted U-shaped relationship where human development peaks and then begins to decline. After the 5,167 kWh threshold, the environmental and social costs of energy production outweigh the benefits. Additional consumption beyond this point is usually wasted on inefficient systems that do not improve quality of life. Achieving a high level of human well-being does not require an infinite supply of power.
From the abstract
This paper examines the nonlinear relationship between per-capita energy consumption and societal well-being, distinguishing between conventional human development (HDI) and sustainability-adjusted development (PHDI). Using a global panel dataset covering 1990–2021, we estimate fixed-effects, instrumental variable (IV), and double/debiased machine learning (DDML) models. While no robust relationship is found between energy use and HDI once controls are included, we document a consistent inverted