Energy in Growth Accounting and the Aggregation of Capital and Output
Please always quote using this URN: urn:nbn:de:bvb:20-opus-241135
- We review the physical aggregation of value added and capital in terms of work performance and information processing and its relation to the deflated monetary time series of output and capital. In growth accounting it complements the time series of labor and energy, measured in hours worked per year and kilowatt-hours consumed per year, respectively. This aggregation is the conceptual basis on which those energy-dependent production functions have been constructed that reproduce economic growth of major industrial countries in the 20th centuryWe review the physical aggregation of value added and capital in terms of work performance and information processing and its relation to the deflated monetary time series of output and capital. In growth accounting it complements the time series of labor and energy, measured in hours worked per year and kilowatt-hours consumed per year, respectively. This aggregation is the conceptual basis on which those energy-dependent production functions have been constructed that reproduce economic growth of major industrial countries in the 20th century with small residuals and output elasticities that are for energy much larger and for labor much smaller than the cost shares of these factors. Accounting for growth in such a way, which deviates from that of mainstream economics, may serve as a first step towards integrating the First and the Second Law of Thermodynamics into economics.…
Author: | Reiner Kümmel, Dietmar Lindenberger |
---|---|
URN: | urn:nbn:de:bvb:20-opus-241135 |
Document Type: | Journal article |
Faculties: | Fakultät für Physik und Astronomie / Institut für Theoretische Physik und Astrophysik |
Language: | English |
Parent Title (English): | Biophysical Economics and Sustainability |
Year of Completion: | 2020 |
Volume: | 5 |
Article Number: | 5 |
Source: | Biophysical Economics and Sustainability 5, 5 (2020). https://doi.org/10.1007/s41247-020-00068-1 |
DOI: | https://doi.org/10.1007/s41247-020-00068-1 |
Dewey Decimal Classification: | 5 Naturwissenschaften und Mathematik / 53 Physik / 530 Physik |
Tag: | aggregation; cost-share theorem; economic growth; energy; entropy; output elasicities |
Release Date: | 2021/07/05 |
Licence (German): | CC BY: Creative-Commons-Lizenz: Namensnennung 4.0 International |