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consumption and investment expansion, and buoyed by a low-inflation environ- ment (excluding Argentina and Venezuela), improved taxing policies (particularly in Mexico), and continuous and strong capital inflows (especially to Brazil). Between 1970 and 1980, economic growth was accompanied by lower energy use per output unit (lower energy intensity), pointing to efficiency gains and a better use of energy resources. The trend was reversed, however, between 1980 and 1985 (per capita income contracted, while energy intensity increased), and the same unfa- vorable pattern continued between 1987 and 1990. This suggests that energy efficien- cy didn’t improve at all during the economic recession of the 1980s. During the first three years of the 1990s, income recovered, but energy intensity remained high. There was scarcely any improvement in energy intensity between 1990 and 2000. The ener- gy intensity indicator has followed fairly similar trends in the different sub-regions, but its absolute value varies considerably. Energy intensity is highest in Caribbean coun- tries, primarily because of the more frequent use of energy-intensive, low-efficiency equipment. Southern Cone countries have the lowest absolute values, due to the use of more advanced equipment and energy technologies in their production processes. Andean countries didn’t show significant changes during the period considered. Therefore, LAC countries have made only modest advances in reducing ener- gy intensity. Besides, during some periods they have even experienced setbacks. After a 9 percent drop between 1970 and 1980, energy intensity went up during the 1980s. In 1999, LAC’s energy consumption per output unit was 7 percent higher than in 1980. On the contrary, OECD countries reduced 20 percent their energy intensity, over the past 20 years, by imposing energy policies geared to diversify energy supply and enhance energy efficiency by reducing waste and using ener- gy in a more cost-effective way. If given appropriate technologies, support, and policies, LAC has significant potential to achieve the same results. 112 SUSTAINABLE ENERGY IN LATIN AMERICA AND THE CARIBBEAN: POTENTIAL FOR THE FUTUREPDF Image | SUSTAINABLE ENERGY IN LATIN AMERICA CARIBBEAN
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