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Energy and the state of nations

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  • Lindenberger, Dietmar
  • Kümmel, Reiner

Abstract

The mathematical conditions for the existence of macroeconomic production functions that are state functions of the economic system are pointed out. The output elasticities and the elasticities of substitution of energy-dependent Cobb-Douglas, CES and LinEx production functions are calculated. The output elasticities, which measure the productive powers of production factors and whose numerical values have been obtained for Germany, Japan, and the USA, are for energy much larger and for labor much smaller than the cost shares of these factors. Energy and its conversion into physical work accounts for most of the growth that mainstream economics attributes to “technological progress” and related concepts. It decisively determines the economic state of nations. Consequences for automation and globalization and perspectives on growth are discussed.

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  • Lindenberger, Dietmar & Kümmel, Reiner, 2011. "Energy and the state of nations," Energy, Elsevier, vol. 36(10), pages 6010-6018.
    • Handle: RePEc:eee:energy:v:36:y:2011:i:10:p:6010-6018
    DOI: 10.1016/j.energy.2011.08.014
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    6. Ayres, Robert U. & van den Bergh, Jeroen C.J.M. & Lindenberger, Dietmar & Warr, Benjamin, 2013. "The underestimated contribution of energy to economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 79-88.
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    14. Jaime Nieto & Pedro B. Moyano & Diego Moyano & Luis Javier Miguel, 2023. "Is energy intensity a driver of structural change? Empirical evidence from the global economy," Journal of Industrial Ecology, Yale University, vol. 27(1), pages 283-296, February.
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    20. Santos, João & Borges, Afonso & Domingos, Tiago, 2020. "Exploring the links between total factor productivity, final-to-useful exergy efficiency, and economic growth: Case study Portugal 1960-2014," MPRA Paper 100214, University Library of Munich, Germany.
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    22. Duro Moreno, Juan Antonio & Giménez-Gómez, José Manuel & Sánchez-Soriano, Joaquín & Vilella Bach, Misericòrdia, 2022. "Allocating remaining carbon budgets and mitigation costs," Working Papers 2072/535074, Universitat Rovira i Virgili, Department of Economics.
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