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System Energy Assessment (SEA), Defining a Standard Measure of EROI for Energy Businesses as Whole Systems

Author

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  • Philip F. Henshaw

    (HDS Systems Design Science, Synapse9.com, New York, NY 10040, USA)

  • Carey King

    (Center for International Energy and Environmental Policy, University of Texas, Austin, TX 78713, USA)

  • Jay Zarnikau

    (LBJ School of Public Affairs & College of Natural Sciences, University of Texas, Austin, TX 78713, USA)

Abstract

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 [1]. 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 [2].

Suggested Citation

  • Philip F. Henshaw & Carey King & Jay Zarnikau, 2011. "System Energy Assessment (SEA), Defining a Standard Measure of EROI for Energy Businesses as Whole Systems," Sustainability, MDPI, vol. 3(10), pages 1-36, October.
  • Handle: RePEc:gam:jsusta:v:3:y:2011:i:10:p:1908-1943:d:14373
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    References listed on IDEAS

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    Cited by:

    1. Macías, Arturo & Matilla-García, Mariano, 2015. "Net energy analysis in a Ramsey–Hotelling growth model," Energy Policy, Elsevier, vol. 86(C), pages 562-573.
    2. Carey W. King & John P. Maxwell & Alyssa Donovan, 2015. "Comparing World Economic and Net Energy Metrics, Part 2: Total Economy Expenditure Perspective," Energies, MDPI, vol. 8(11), pages 1-22, November.
    3. J. L. Henshaw, 2019. "Systems Thinking for Systems Making: Joining Systems of Thought and Action," Systemic Practice and Action Research, Springer, vol. 32(1), pages 63-91, February.
    4. Tzen-Ying Ling & Wei-Kai Hung & Chun-Tsu Lin & Michael Lu, 2020. "Dealing with Green Gentrification and Vertical Green-Related Urban Well-Being: A Contextual-Based Design Framework," Sustainability, MDPI, vol. 12(23), pages 1-24, November.
    5. Leena Grandell & Charles A.S. Hall & Mikael Höök, 2011. "Energy Return on Investment for Norwegian Oil and Gas from 1991 to 2008," Sustainability, MDPI, vol. 3(11), pages 1-21, October.
    6. Flavio R. Arroyo M. & Luis J. Miguel, 2019. "The Trends of the Energy Intensity and CO 2 Emissions Related to Final Energy Consumption in Ecuador: Scenarios of National and Worldwide Strategies," Sustainability, MDPI, vol. 12(1), pages 1-21, December.
    7. Salehi, Mohammad & Khajehpour, Hossein & Saboohi, Yadollah, 2020. "Extended Energy Return on Investment of multiproduct energy systems," Energy, Elsevier, vol. 192(C).
    8. David J. Murphy & Michael Carbajales-Dale & Devin Moeller, 2016. "Comparing Apples to Apples: Why the Net Energy Analysis Community Needs to Adopt the Life-Cycle Analysis Framework," Energies, MDPI, vol. 9(11), pages 1-15, November.
    9. Carey W. King & John P. Maxwell & Alyssa Donovan, 2015. "Comparing World Economic and Net Energy Metrics, Part 1: Single Technology and Commodity Perspective," Energies, MDPI, vol. 8(11), pages 1-26, November.
    10. Emily Grubert, 2023. "Yellow, red, and brown energy: leveraging water footprinting concepts for decarbonizing energy systems," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 7239-7260, July.
    11. Charles A.S. Hall & Bruce E. Dale & David Pimentel, 2011. "Seeking to Understand the Reasons for Different Energy Return on Investment (EROI) Estimates for Biofuels," Sustainability, MDPI, vol. 3(12), pages 1-20, December.
    12. King, Carey W., 2014. "Matrix method for comparing system and individual energy return ratios when considering an energy transition," Energy, Elsevier, vol. 72(C), pages 254-265.
    13. Carey W. King, 2015. "Comparing World Economic and Net Energy Metrics, Part 3: Macroeconomic Historical and Future Perspectives," Energies, MDPI, vol. 8(11), pages 1-24, November.
    14. Adam R. Brandt & Michael Dale, 2011. "A General Mathematical Framework for Calculating Systems-Scale Efficiency of Energy Extraction and Conversion: Energy Return on Investment (EROI) and Other Energy Return Ratios," Energies, MDPI, vol. 4(8), pages 1-35, August.
    15. Colin M. Beal & Robert E. Hebner & Michael E. Webber & Rodney S. Ruoff & A. Frank Seibert & Carey W. King, 2012. "Comprehensive Evaluation of Algal Biofuel Production: Experimental and Target Results," Energies, MDPI, vol. 5(6), pages 1-39, June.
    16. Moriarty, Patrick & Honnery, Damon, 2019. "Ecosystem maintenance energy and the need for a green EROI," Energy Policy, Elsevier, vol. 131(C), pages 229-234.

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