Abstract
Energy is a key source of economic growth. For industrialization and economic development, economic growth and energy consumption have a positive and linear correlation. Energy use in developing nations has increased more than fourfold in the past three decades and is further likely to increase exponentially in the future. Energy offers advancement in the services offered by energy is desirable and essential, so energy services are important for economic growth as well as for improvement of standards of living of people. Various manufacturing and consumption activities use renewable energy as the primary input, so it becomes the main source of economic development and growth. If energy is not sufficient to meet demand, it will lead to a fall in GDP, the most important input for economic growth. This chapter highlights the fact that the geometric increase in energy use in developing nations has significant effects. Energy development offers several benefits to developed nations and contributes to economic growth in progressive nations (developing nations), which leads to improvement in every respect such as poverty and hunger reduction, raising standards of living, and a better environment. This chapter attempts to show the relationship between the rate of economic growth and energy consumption in developing nations.
