Table 2-5 Example SSP Markets by Class 2.5. Price Analysis Trends in international energy markets were used to estimate future prices and levels of demand. Many assumptions about the direction of world economic growth and technology development are embedded in projecting these prices. The drivers for world energy demand are the rate of change in population and in world economic activity. According to the U.S. Energy Information Administration, in 1990, world energy consumption was over 345 quadrillion British thermal units (BTU). World gross domestic product, a basic indicator of economic activity, (GDP), which was about $8 trillion (1985 U.S. dollars) in 1970, grew to $16 trillion in 1990 ,and is expected to grow to $27 trillion by 2010. World population is expected to grow to over 7 billion by 2010, an increase of 2 billion people over 1990, and 3 billion over 1970. The growth in energy demand that results from increases in population and increases in economic activity depends on where those increases occur. Population growth and economic growth in countries where current energy use per capita is relatively small contribute less to overall energy demand than similar growth in countries where current energy use is higher. Energy use per capita is, however, affected by economic growth, and may change significantly Demand for energy for any given country or region can be estimated as a function of population, income, and level of economic development. Price was estimated using projected trends of current energy prices. Electricity prices vary based on both time and market. Developed and developing countries may face different prices because of the the extra costs of doing business in some developing countries, where
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