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Net energy analysis in a Ramsey-Hotelling growth model

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  • Arturo Macías

    (Banco de España)

  • Mariano Matilla-García

    (Universiad Nacional de Educación a Distancia)

Abstract

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.

Suggested Citation

  • Arturo Macías & Mariano Matilla-García, 2012. "Net energy analysis in a Ramsey-Hotelling growth model," Working Papers 1217, Banco de España.
    • Handle: RePEc:bde:wpaper:1217
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    Cited by:

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    2. Rye, Craig D. & Jackson, Tim, 2018. "A review of EROEI-dynamics energy-transition models," Energy Policy, Elsevier, vol. 122(C), pages 260-272.

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    More about this item

    Keywords

    EROI; net energy analysis; growth; Ramsey-Hotelling; energy depletion;
    All these keywords.

    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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