For countries’ comparison, energy intensities have to be measured in the same monetary unit (€, $) by converting national currencies in €, $. The conversion with market exchange rates raises two problems:
- Market exchange rates vary quite a lot independently of the economic performance of countries which affect the relative energy intensity values between countries (their “ranking”)
- The conversion does not reflect the fact that in less developed countries consumer prices are on average much lower than in more developed countries.
The use of Purchasing Power Parities (PPP) improves the comparison as it does not fluctuate and accounts for the real purchasing power of incomes.