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The limiting factor: energy, growth, and divergence, 1820–1913

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  • Paolo Malanima
Abstract
On the basis of a new series on the consumption of traditional and modern sources of energy between 1820 and 1913, this article addresses the start of modern growth and the great divergence on the world scale. Since the beginning of the nineteenth century, the greater availability of modern energy sources expanded working capacity well beyond the potential of previous agricultural civilizations. Growth of energy consumption rose primarily in western Europe, northern America, and Oceania. As a result, labour productivity rose, leading to an increase in real wages, which was an incentive to replace labour with mechanical engines. The higher energy consumption in these three macro‐areas led to global inequality in productive capacity and technology which peaked on the eve of the First World War.

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  • Paolo Malanima, 2020. "The limiting factor: energy, growth, and divergence, 1820–1913," Economic History Review, Economic History Society, vol. 73(2), pages 486-512, May.
    • Handle: RePEc:bla:ehsrev:v:73:y:2020:i:2:p:486-512
    DOI: 10.1111/ehr.12913
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    3. Malanima, Paolo, 2021. "Energy, productivity and structural growth. The last two centuries," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 54-65.
    4. Bercegol, Hervé & Benisty, Henri, 2022. "An energy-based macroeconomic model validated by global historical series since 1820," Ecological Economics, Elsevier, vol. 192(C).
    5. Paul Steenwyk & Matthew Kuperus Heun & Paul Brockway & Tânia Sousa & Sofia Henriques, 2022. "The Contributions of Muscle and Machine Work to Land and Labor Productivity in World Agriculture Since 1800," Biophysical Economics and Resource Quality, Springer, vol. 7(2), pages 1-17, June.
    6. Hervé Bercegol & H. Benisty, 2022. "An energy-based macroeconomic model validated by global historical series since 1820," Post-Print cea-03451983, HAL.

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