
226 Engineering Response to Climate Change
6.3 Determinants of Demand
There are two approaches to considering energy demand. From a macro-
economic perspective, the resource endowments of a region determine the
potential pathways for its economic activity and resource use. From a micro-
economic perspective, lifestyles shape demand. In this section, we will dis-
cuss the various determinants of demand from both perspectives.
6.3.1 Economic Structure
Technological innovation, the price of resources, social organization, and
barriers to trade have been key determinants of the patterns of economic
activity and energy use since the Industrial Revolu