Rising Energy Costs Threaten the Future of the Service Economy
Rising energy prices are affecting how different sectors of the economy grow. The service sector is becoming more important because it can use energy more efficiently than the industrial sector. But if energy costs keep going up, the service sector might not be as dominant in the future. This was shown by looking at data from the U.S. between 1970 and 2005. The study found that if energy becomes more expensive, the productivity difference between sectors could disappear, putting the service economy at risk.