Comparing World Economic and Net Energy Metrics, Part 2: Total Economy Expenditure Perspective

King, Carey W.; Maxwell, John P.; Donovan, Alyssa

doi:10.3390/en81112347

Cited by 34 publications

(34 citation statements)

References 49 publications

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“…This is the key contribution of the methodology we outline here and a step forwards in the EROI literature. Our calculations for the UK without including indirect energy (E iE ) are the same order of magnitude to King et al's [23] calculations of EROI (or net power ratio-NPR as they call it).…”

Section: Resultssupporting

confidence: 64%

“…However, these studies diverge from our own in that they have either not accounted for energy trade (both direct and embodied) in calculating indirect energy [23][24][25][26], they have focused on a single year [27] or they have focused on single energy sources rather than the aggregate production of energy by a nation [28]. Our approach represents a contribution to these efforts in that it combines three aspects of net energy analysis at a country level that have been pursued separately up to now: accounting for international energy trade in the calculation of indirect energy (in our case using an Input-Output framework), using data for a more than one year, and taking a national perspective.…”

Section: Introductionmentioning

confidence: 56%

“…More recent studies that attempted national-level net energy estimations include the studies by King et al [23,24], King [25], Fizaine and Court [26], Herendeen [27] and Raugei and Leccisi [28]. However, these studies diverge from our own in that they have either not accounted for energy trade (both direct and embodied) in calculating indirect energy [23][24][25][26], they have focused on a single year [27] or they have focused on single energy sources rather than the aggregate production of energy by a nation [28].…”

Section: Introductionmentioning

confidence: 99%

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Developing an Input-Output Based Method to Estimate a National-Level Energy Return on Investment (EROI)

et al. 2017

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Abstract:Concerns have been raised that declining energy return on energy investment (EROI) from fossil fuels, and low levels of EROI for alternative energy sources, could constrain the ability of national economies to continue to deliver economic growth and improvements in social wellbeing while undertaking a low-carbon transition. However, in order to test these concerns on a national scale, there is a conceptual and methodological gap in relation to calculating a national-level EROI and analysing its policy implications. We address this by developing a novel application of an Input-Output methodology to calculate a national-level indirect energy investment, one of the components needed for calculating a national-level EROI. This is a mixed physical and monetary approach using Multi-Regional Input-Output data and an energy extension. We discuss some conceptual and methodological issues relating to defining EROI for a national economy, and describe in detail the methodology and data requirements for the approach. We obtain initial results for the UK for the period 1997-2012, which show that the country's EROI has been declining since the beginning of the 21st Century. We discuss the policy relevance of measuring national-level EROI and propose avenues for future research.

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Section: Resultssupporting

confidence: 64%

Section: Introductionmentioning

confidence: 56%

Section: Introductionmentioning

confidence: 99%

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Developing an Input-Output Based Method to Estimate a National-Level Energy Return on Investment (EROI)

et al. 2017

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“…Part 1 includes a fuller Background and Motivation before analyzing how net energy and power metrics translate to individual energy commodity (and technology) costs and prices, respectively [1]. Part 2 analyzes how net energy metrics translate to total expenditures on energy [2]. Part 3 places the calculations of expenditures on energy in historical, current, and future contexts.…”

Section: Introductionmentioning

confidence: 99%

Comparing World Economic and Net Energy Metrics, Part 3: Macroeconomic Historical and Future Perspectives

King¹,

Maxwell

Donovan

2015

Energies

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I use energy cost share to characterize the role of energy in the economy. Specifically, I use an estimate of monetary expenditures for primary energy on an annualized basis for forty-four countries from 1978 to 2010 for natural gas, coal, petroleum, and electricity. I show that global energy cost share is significantly correlated to a one-year lag in the change in gross domestic product as well as measures of total factor productivity. Given the historical reduction in the relative cost of energy (including food and fodder for animate power) since the start of the Industrial Revolution, combined with a global energy cost share estimate, I conclude that the turn of the 21st Century represents the time period with the cheapest energy in the history of human civilization (to date). This potential historical nadir for energy expenditures around 2000 has important ramifications for strategies to solve future social, economic, and environmental problems such as reducing annual emissions of greenhouse gases (GHGs). Rapidly decreasing annual GHG emissions while internalizing their costs into the economy might feedback to increase energy expenditures to such a degree as to prevent economic growth during that transition.

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“…Increased expenditures by energy and food sectors were the drivers of the post-2002 economy-wide structural change. Further, these increased expenditures are driven by the approach of biophysical constraints that are no longer allowing the production of ever-cheaper food and energy (King 2015b;King et al 2015b). To be clear, energy and food intermediate expenditures are still a relatively small share compared to the 1950s, but they are no longer getting cheaper as in the past.…”

Section: Interpretation Of Trendsmentioning

confidence: 99%

Information Theory to Assess Relations Between Energy and Structure of the U.S. Economy Over Time

King

2016

Biophys Econ Resour Qual

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This paper describes the changing structure of the United States' (U.S.) domestic economy by applying information theory-based metrics to the U.S. input-output (I-O) tables from 1947 to 2012. Here the I-O tables are an economic network where the sectors are the nodes. The value of these metrics is that they describe the balance or trade-off between efficiency and redundancy of network flows as well as equality and hierarchy of flows through nodes in a network. I relate these metrics to the U.S. gross power consumption and annual intermediate spending by the food and energy sectors, the latter being a proxy for the inverse of the net power ratio (or net energy) of the economy, to test hypotheses of energy-economy structural linkages. The results of this paper show that increasing gross power consumption, as well as a decreasing share of intermediate expenditures of the food and energy sectors, correlates with increased distribution of money among economic sectors, and vice versa. The information theory metrics indicate two time periods at which major structural shifts occurred. The first was between 1967 and 1972, and the second was around the turn of the twenty-first century when food and energy expenditures no longer continued to decrease after 2002. In response to the latter, it is clear that the U.S. economy did trade off structural reserves (e.g., decreasing metrics of conditional entropy, redundancy, and equality) for structural efficiency (e.g., increasing metrics of efficiency, mutual constraint, and hierarchy) after food and energy expenditures increased post-2002. I also test the structural trends with increasingly simpler (e.g., fewer sectors) representations of the I-O tables, and the results are more consistent for I-O representations that account for inputs and outputs (e.g., value added and gross domestic product) rather than only the intermediate transactions among sectors. The findings of this paper have important implications for economic modeling in at least two ways. First, the paper helps explain how fundamental shifts in resources costs relate to economic structure and economic growth. Second, the paper shows that the number of sectors used to represent economic transactions influences the systemic metrics themselves.

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Comparing World Economic and Net Energy Metrics, Part 2: Total Economy Expenditure Perspective

Cited by 34 publications

References 49 publications

Developing an Input-Output Based Method to Estimate a National-Level Energy Return on Investment (EROI)

Developing an Input-Output Based Method to Estimate a National-Level Energy Return on Investment (EROI)

Comparing World Economic and Net Energy Metrics, Part 3: Macroeconomic Historical and Future Perspectives

Information Theory to Assess Relations Between Energy and Structure of the U.S. Economy Over Time

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