The Role of Energy in Economic Growth

Stern, David I. (2010). The Role of Energy in Economic Growth. USAEE-IAEE Working Paper No. 10-055, available at SSRN, Nov 2010.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1715855

Physics shows that energy is necessary for economic production and, therefore, economic growth but the mainstream theory of economic growth, except for specialized resource economics models, pays no attention to the role of energy. This paper reviews the relevant biophysical theory and mainstream, resource economics, and ecological economics models of growth. A possible synthesis of energy-based and mainstream models is presented. (© Stern)


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