System Energy Assessment (SEA), Defining a Standard Measure of EROI for Energy Businesses as Whole Systems
A more objective method for measuring the energy needs of businesses, System Energy Assessment (SEA), measures the combined impacts of material supply chains and service supply chains, to assess businesses as whole self-managing net-energy systems. The method is demonstrated using a model Wind Farm, and defines a physical measure of their energy productivity for society (EROI-S), a ratio of total energy delivered to total energy expended. Energy use records for technology and proxy measures for clearly understood but not individually recorded energy uses for services are combined for a whole system estimate of consumption required for production. Current methods count only energy needs for technology. Business services outsource their own energy needs to operate, leaving no traceable record. That uncounted business energy demand is often 80% of the total, an amount of “dark energy” hidden from view, discovered by finding the average energy estimated needs for businesses far below the world average energy consumed per dollar of GDP. Presently for lack of information the energy needs of business services are counted to be “0”. Our default assumption is to treat them as “average”. The result is a hard measure of total business demand for energy services, a “Scope 4” energy use or GHG impact assessment. Counting recorded energy uses and discounting unrecorded ones misrepresents labor intensive work as highly energy efficient. The result confirms a similar finding by Hall et al . in 1981 . We use exhaustive search for what a business needs to operate as a whole, tracing internal business relationships rather than energy data, to locate its natural physical boundary as a working unit, and so define a business as a physical rather than statistical subject of scientific study. See also online resource materials and notes .
References listed on IDEAS
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- Cleveland, Cutler J. & Kaufmann, Robert K. & Stern, David I., 2000. "Aggregation and the role of energy in the economy," Ecological Economics, Elsevier, vol. 32(2), pages 301-317, February.
- Bullard, Clark W. & Penner, Peter S. & Pilati, David A., 1978. "Net energy analysis : Handbook for combining process and input-output analysis," Resources and Energy, Elsevier, vol. 1(3), pages 267-313, November.
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- C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
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