The influence of GDP and energy price level on energy demand

Abstract

Energy is the driving force of industrial development, and the growth of modern economy cannot be separated from a solid industrial foundation. Energy is therefore vital to economic growth. Therefore, the study of the influencing factors of energy demand is conducive to preventing energy crisis and maintaining long-term stable economic growth. Taking OECD countries as examples, this paper studies the effects of real GDP and energy price index on energy demand through multiple linear regression. It is found that both real GDP and energy price level have a significant impact on energy demand, and energy demand has a positive correlation with real GDP, but a significant negative correlation with price level.