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Energy, Entropy, Constraints, and Creativity in Economic Growth and Crises

https://doi.org/10.3390/e22101156
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no DOI — not checkedWatts (W) measure energy per unit time. The BP Statistical Review 2019, p. 8, shows that 13,864.9 MtOE were consumed in the 8760 h of 2018. 1tOE = 11,630 kWh. According to p. 9 of this statistic the shares of the different primary energy carriers in 2018 world energy consumption are: Oil 33.6%, Natural gas 23.8%, Coal 27.2%, Nuclear energy 4.4%, Hydro electricity 6.8%, Renewables 4.0%.
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no DOI — not checkedIn agrarian societies the factor capital includes hand tools, means of transportation moved by muscle power, water and wind, and buildings to accommodate people, animals, vehicles and tools; the factor land sustains the plants, which by photosynthesis absorb solar energy and convert it into food for humans and animals and wood for construction and fire.
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no DOI — not checkedIn 2013 the G7 countries had a share of 11 percent of global population and of 33 percent of global domestic product (adjusted for purchasing power) [30].
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no DOI — not checkedHerman Daly [40] has summarized the studies of the renowned economists Nordhaus [41], Beckermann [42] and Schelling [43] on the economic impact of climate change, assuming that climate change only concerns agriculture. Since that sector contributed less than 3% to the GDP of the USA in 1992, they concluded that even a drastic decline of agricultural production should only result in small losses of welfare.
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no DOI — not checkedD.I. Stern [52] modified Solow’s growth model by adding an energy input. He described gross output by a function that “embeds a Cobb-Douglas function of capital (K) and labor (L) in a CES function of value added and energy (E).” The embedded Cobb-Douglas function weighs capital and labor with their cost shares. Time-dependent augmentation indices of labor and energy take care of changes in factor quality and technology. But gross output is the sum of GDP plus intermediate consumption. As a rule, the theory of economic growth considers GDP.
no DOI — not checkedConceptual objections against macroeconomic production functions such as the ones raised by Joan Robinson [54,55] in the “Cambridge controversy” have been dealt with in [10,31] by defining output and capital in terms of work performance and information processing and relating this to monetary units. In biophysical energy-dependent production functions the production factors are the ones actually used by the economic actors. These inputs are not those of neoclassical production possibility frontiers, where the degree of factor use is per definition 100 percent.
no DOI — not checkedThe production function’s implicit time dependence via the time dependence of K(t), L(t), E(t) is not indicated in Y(K, L, E; t) for notational simplicity.
no DOI — not checkedConstant returns to scale implies that the output of two identical production systems is twice the output of one of these systems.
no DOI — not checkedSamuelson, P.A. (1976). Economics, MacGraw-Hill Kogagusha LTD.. [10th ed.]. International Student Edition.
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no DOI — not checkedThe decrease of inequality in energy consumption during the first decade of the 21st century also shows in the increase of the global average of energy consumption from 2 kW/capita in 2004 [10] (p. 61) to 2.5 kW/capita in 2010 [70] (Figure 3, left panel).
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no DOI — not checkedWhen assessing German CO2-emissions one should keep in mind that the official numbers, e.g., 13.2 tons per person and year in 2011, are calculated from the emissions produced within the country. If one adds the emission caused by the production of the goods and services imported by and consumed in Germany, the number increases to 18.3 t. For comparison, the corresponding emissions in the USA are 23.5 t as per production principle, and 27.9 t as per consumption principle [76].
no DOI — not checkedSection 2, ref. 11.
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no DOI — not checkedNationale Akademie der Wissenschaften Leopoldina (2010). Bioenergie—Möglichkeiten und Grenzen, Kurzfassung und Empfehlungen; Deutsche Akademie der Naturforscher Leopoldina.
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no DOI — not checkedPaech, N. (2020, October 06). Liberation from Excess —The Road to a Post-Growth Economy. oekom verlag München, 2. Auflage. Available online: https://www.oekom.de/buch/liberation-from-excess-9783865813244.
no DOI — not checkedGlaser, P.E. (1973). Method and Apparatus for Converting Solar Radiation to Electrical Power. (3,781,647), U.S. Patent.
no DOI — not checkedBoeing Aerospace, Co. (1976). System’s Definition—Space Based Power Conversion Systems, National Aeronautics and Space Administration. NASA, MSFC, Contract NAS8-31628, Fourth Performance Briefing.
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no DOI — not checkedDiaz, F.C., and Seedhouse, E. (2017). To Mars and Beyond, Fast! Springer Praxis Books, Springer International Publishing.
no DOI — not checkedO’Neill, G.K. (1977). The High Frontier—Human Colonies in Space, William Morrow & Co.
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no DOI — not checkedGrey, J., and Hamdan, L.A. (1981, January 18–21). Space Manufacturing 4. Proceedings of the Fifth Princeton/AIAA Conference, Princeton, NJ, USA.
no DOI — not checkedA publication of scholars, who work in a program of investigating the role of energy and exergy in economic growth, interpreted the LinEx function’s linear dependence on E and exponential dependence on quotients of K,L,E as meaning that energy E is the only real factor of production. The exponential was understood as being just a function of time t, because the factors vary in time. In our resulting discussion with the colleagues via e-mail, in which the difference between explicit and implicit time dependence was explained, they raised the question under which conditions energy-dependent production functions will depend linearly on L, or on K, and exponentially on the factor quotients. The two paragraphs that contain Equations (11) and (12) give the general answer to this question. Special, explicit answers are presented elsewhere (in “Energie, Entropie, Kreativität”, Springer Spektrum, 2018).
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