Global economic output will quadruple by 2050, driven primarily by population growth, predicts UBS Wealth Management Research in a new report.

However, for that to happen, sharp increases in efficiency must be achieved in the basic sectors of energy, water and food, the report says.

Three forces will drive consumers and producers to make more efficient use of scarce resources, it says: higher prices, continuing urbanization, and stricter environmental regulations. “Increased efficiency can help avert the doomsday scenarios that are frequently invoked, such as climatic catastrophes, widespread deforestation and the exhaustion of petroleum and groundwater reserves,” UBS notes, adding that the drive for greater efficiency will also provide good returns to those who invest in the companies that lead this effort.

In the energy sector, demand for all types of building insulation should increase, it predicts. “Building management systems also offer large potential savings. Manufacturers of energy control systems, efficient heating, ventilation and air conditioning systems and hot water systems offer attractive investment opportunities in this area,” it adds.

The productivity increases in food production that are needed to meet growing demand can be met by makers of improved fertilizers, crop protection, seeds, machinery and improved irrigation systems.

There will also be a rising need for investment in water, it says. “To use water more efficiently, manufacturers and operators of water treatment plants, producers of pumps, piping, valves and monitoring equipment will all become more important in the future, making them attractive to investors,” it says.