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Page added on March 25, 2012
Net energy analysis growth model
This article presents a dynamic growth model with energy as an input in the production function. The available stock of energy resources is ordered by a quality parameter based on energy accounting: the “Energy Return on Energy Invested” (EROI). To our knowledge this is the first paper where EROI fits in a neoclassical growth model (with individual utility maximization and market equilibrium), setting the economic use of “net energy analysis” on firmer theoretical ground. All necessary concepts to link neoclassical economics and EROI are discussed before their use in the model, and a comparative static analysis of the steady states of a simplified version of the model is presented.
Net energy analysis in a ramsey-hotelling growth model
Arturo Macías & Mariano Matilla-García, Banco de España, March 2012
http://www.bde.es/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/Docum\
entosTrabajo/12/Fich/dt1217e.pdf
5 Comments on "Net energy analysis growth model"
BillT on Sun, 25th Mar 2012 3:58 am
A long paper saying nothing. Another exercise to try to prove the EROEI can be modified by money invested. Let me take an economist 500 miles out into the desert and give him a billion dollars stacked on a pallet and command him to grow his own food and make his own water. THAT is the value of money when there are no resources.
Luis Gutierrez on Sun, 25th Mar 2012 4:53 am
Another mathematical rationalization of “infinite growth in a finite planet”?
The Practician on Sun, 25th Mar 2012 5:16 am
“Then, the following equation allows us to compute labour in the non energy sector (l) in steady state, numerically solving a one-dimensional equation:
1 (1) l(1l) (1) a
1 1 1
() 1e( ) 1 a(1l) l (1) (1a) (1l) ”
All this fake math is makin’ my dick soft.
Arthur on Sun, 25th Mar 2012 9:06 am
Bill, you are 100% correct. I had endless discussions on libertarian forums about the pros and cons of the goldstandard, fiat money, role of government, market, etc. Everybody is overlooking the 500 pound gorilla in the room, namely that in a period of 100 years we have wasting the planetary family capital, build up in eons.
Peter on Sun, 25th Mar 2012 12:38 pm
something that I have always wondered: are the graphs etc one sees of oil production net or gross? That is to say, is the oil (oil equivalent) used in producing the oil subtracted out of the total?
I suspect the answer no, so a horizontal line in production with a falling EREI implies declining oil going into the wider economy.