Thermodynamics and economics

Ayres, Robert U.; Nair, Indira

doi:10.1063/1.2915973

Cited by 86 publications

(39 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Amadeh and Kafi (2015) provided a theoretical review on the relationship. As indicated in biophysical growth model by Ayres and Nair (1984), energy is the only driver of growth as both labor and capital need to consume energy to be functioning. Conversely, neoclassical economists stated that energy has no direct effect on economic growth but has indirect effect through labor and capital.…”

Section: Theoretical Reviewmentioning

confidence: 99%

The Impact of Energy Consumption on Economic Growth: The Case of China

Sek¹

2017

Appl Ecol Env Res

View full text Add to dashboard Cite

Abstract. Energy resources are important sources used in production. The consumption of energy resources is closely linked to the economic development and the environmental quality. In this paper, empirical analyses are conducted to reveal how energy consumption can affect economic growth (GDP) directly and indirectly through its impact on environmental quality. The study is focused on China, an economy that is highly energy intensive and the second largest economy in the World. Applying linear and threshold cointegration tests, our results reveal significant long-run relationship in the model with GDP as dependent factor and the regressors of energy consumption and carbon dioxide emissions. Our estimation results show that energy consumption has direct positive effect on economic growth but it may have larger negative effect on economic growth indirectly through higher carbon dioxide emissions.

show abstract

Section: Theoretical Reviewmentioning

confidence: 99%

The Impact of Energy Consumption on Economic Growth: The Case of China

Sek¹

2017

Appl Ecol Env Res

View full text Add to dashboard Cite

show abstract

“…Kenneth Boulding (1978Boulding ( , 1981 Hannon (1973), Slesser (1975), Gilliland (1975), Huettner (1976), Berndt (1978, Costanza (1980), Parsons and Harrison (1981), Bryant (1982), Roberts (1982), Ayres and Nair (1984), Proops, (1983Proops, ( , 1985Proops, ( , 1987, Odum (1988), Faber and Proops (1990), Burley and Foster (1992), Binswanger (1993), Giampietro et al (1993), Ayres (1998) and Buenstorf (2004).…”

Section: The Economic System Is An Energetic Systemmentioning

confidence: 99%

Energy, aesthetics and knowledge in complex economic systems

Foster

2011

Journal of Economic Behavior & Organization

View full text Add to dashboard Cite

It is argued that the fact that economic systems are dissipative structures must be taken fully into account in economics if we are to understand the nature of the economic-ecological interface and how to deal with emergent environmental problems, such as global warming. Such problems are a product of economic growth, which is widely accepted to be the outcome of the acquisition and application of knowledge. Drawing upon disparate literatures within and outside economics, it is argued that economic growth should be more properly viewed as the outcome of a co-evolutionary process that involves the autocatalytic interaction of new knowledge and access of increasing amounts of free energy to do increasingly specialized forms of work. The conventional view is that energy is just a factor of production used increasingly as new knowledge is employed. The possibility of reverse causation is considered here. Specifically, the relevance of the energy hypothesis, associated with Eric Schneider and his collaborators, is assessed. This hypothesis states that all dissipative structures have, as their primary objective, the reduction of accessible free energy gradients. It is concluded that such a hypothesis cannot be rejected in the context of economic behaviour and that this opens up an important research agenda for economists. It is argued that such research has to be interdisciplinary because our economic behaviour is driven by aspirational goals which are aesthetic constructions in the mind and strongly connected to our emotions. In this regard, recent neuropsychological literature, arguing that certain emotional dispositions are necessary before we can employ our cognitive capabilities effectively, is important to digest. Thus, the possibility exists that it is in the emotional domain of the mind that the energy hypothesis is operative. Aesthetic constructions are, thus, connecting agents in the knowledge-energy co-evolutionary process. Some of the macroeconomic evidence concerning the relationship between free energy use and economic growth is considered and it is found that the energy hypothesis cannot be rejected in the economic domain. However, considerably more research needs to be undertaken before any firm conclusions can be drawn. * I would like to thank

show abstract

“…In certain applications or interpretations, widely used models such as the Cobb-Douglas or constant elasticity of substitution (CES) production functions (Shaphard 1981) embody the physically impossible assumption that a given output can be maintained as energy or material inputs vanish as long as human-made capital can be increased sufficiently. In reality, the substitution possibilities are limited to the quantity of energy and materials embodied in final goods and in capital itself (Dasgupta and Heal 1979, Meshkov and Berry 1979, Ayres and Nair 1984, Ruth 1993, 1995c.…”

Section: Cobb-douglas Functionmentioning

confidence: 99%

“…Possibilities for substitution between human and natural capital implied by different production functions. Due to the complementarity between human and natural capital, the substitutions are limited to the shaded area (modified from Ayres and Nair, 1984).…”

Section: A Brief Conceptual Assessment Of Equilibrium Thermodynamics mentioning

confidence: 99%

Entropy, Economics, and Policy

Rüth¹

2011

Thermodynamics and the Destruction of Resources

View full text Add to dashboard Cite

Empfohlene Zitierung / Suggested Citation: Ruth, M. (2007). Entropy, economics, 140 AbstractThe laws of thermodynamics constrain transformation of materials and energy, and thus have implications for material and energy use in the economy, for environmental impact, and for policy. This paper provides an overview over the applications of concepts from thermodynamics in economics at the level of individual processes and explores potential constraints at larger system levels -the economy as a whole and the ecosystems within which economies are embedded. Specific emphasis is placed on the ways in which insights from thermodynamics are used to inform economic and policy decision making.

show abstract

Thermodynamics and economics

Cited by 86 publications

References 8 publications

The Impact of Energy Consumption on Economic Growth: The Case of China

The Impact of Energy Consumption on Economic Growth: The Case of China

Energy, aesthetics and knowledge in complex economic systems

Entropy, Economics, and Policy

Contact Info

Product

Resources

About