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World Energy Outlook 2007

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Box 19.1: The Vehicle Stock in the High Growth Scenario<br />

The transport sector is responsible for 74% of the additional final oil<br />

demand in the High Growth Scenario. Higher incomes lead to faster<br />

growth in the total vehicle stock, which reaches 404 million in 2030 –<br />

109 million more than in the Reference Scenario. Most of the additional<br />

vehicles are passenger cars, with only minimal stock growth for freight<br />

vehicles and buses, even though their consumption of fuel rises in line with<br />

passenger cars. Demand for two-wheelers levels out earlier than in the<br />

Reference Scenario, the rapid increase in total vehicles towards the end of<br />

the <strong>Outlook</strong> period being partly due to consumers leap-frogging directly to<br />

passenger cars. More vehicles on the road in the High Growth Scenario puts<br />

more strain on India’s already congested roads and increases local pollution.<br />

The need to increase funding for public transport and for expanded and<br />

better roads is even more pressing than in the Reference Scenario.<br />

Figure 19.3: India’s Vehicle Ownership and Stock in the Reference and High<br />

Growth Scenarios Compared with Selected Countries<br />

800<br />

700<br />

88<br />

million<br />

vehicles per 1 000 people<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

68<br />

million<br />

295<br />

million<br />

404<br />

million<br />

38<br />

million<br />

16<br />

million<br />

0<br />

India<br />

2004<br />

India<br />

2030<br />

Reference<br />

Scenario<br />

India<br />

2030<br />

High Growth<br />

Scenario<br />

Brazil<br />

2004<br />

Korea<br />

2004<br />

Japan<br />

2004<br />

Total vehicle stock<br />

In the High Growth Scenario, industrial energy demand grows faster, by 4.5%<br />

per year over the <strong>Outlook</strong> period compared with 4.1% in the Reference<br />

Scenario. By 2030, it is 10% higher than in the Reference Scenario. Higher<br />

economic growth pushes up demand for steel and cement to build power<br />

plants, roads, ports and other infrastructure. Electricity demand in the<br />

industrial sector is much higher in the High Growth Scenario as the stronger<br />

564 <strong>World</strong> <strong>Energy</strong> <strong>Outlook</strong> <strong>2007</strong> - INDIA’S ENERGY PROSPECTS

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