Net energy analysis in a Ramsey-Hotelling growth model
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.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reynolds, Douglas B., 1999. "The mineral economy: how prices and costs can falsely signal decreasing scarcity," Ecological Economics, Elsevier, vol. 31(1), pages 155-166, October.
- Stephen P. Holland, 2008. "Modeling Peak Oil," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 61-80.
- 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, Open Access Journal, vol. 3(10), pages 1908-1943, October.
- Anderson, R. K. & Moroney, J. R., 1993. "Morishima elasticities of substitution with nested production functions," Economics Letters, Elsevier, vol. 42(2-3), pages 159-166.
- Li Hong & Pei Dong, Zhang & Chunyu, He & Wang Gang, 2007. "Evaluating the effects of embodied energy in international trade on ecological footprint in China," Ecological Economics, Elsevier, vol. 62(1), pages 136-148, April.
- Bentolila, Samuel & Saint-Paul, Gilles, 1998.
"Explaining Movements in the Labour Share,"
CEPR Discussion Papers
1958, C.E.P.R. Discussion Papers.
- Bentollia, S. & Saint-Paul, G., 1999. "Explaining Movements in the Labor Share," Papers 9905, Centro de Estudios Monetarios Y Financieros-.
- Samuel Bentolila & Gilles Saint Paul, 1999. "Explaining movements in the labor share," Economics Working Papers 374, Department of Economics and Business, Universitat Pompeu Fabra.
- Koetse, Mark J. & de Groot, Henri L.F. & Florax, Raymond J.G.M., 2008.
"Capital-energy substitution and shifts in factor demand: A meta-analysis,"
Elsevier, vol. 30(5), pages 2236-2251, September.
- Mark J. Koetse & Henri L.F. de Groot & Raymond J.G.M. Florax, 2006. "Capital-Energy Substitution and Shifts in Factor Demand: A Meta-Analysis," Tinbergen Institute Discussion Papers 06-061/3, Tinbergen Institute.
- Ujjayant Chakravorty & Michel Moreaux & Mabel Tidball, 2008.
"Ordering the Extraction of Polluting Nonrenewable Resources,"
American Economic Review,
American Economic Association, vol. 98(3), pages 1128-44, June.
- CHAKRAVORTY Ujjayant & MOREAUX Michel & TIDBALL Mabel, 2006. "Ordering the Extraction of Polluting Nonrenewable Resources," LERNA Working Papers 06.19.212, LERNA, University of Toulouse.
- Chakravorty, Ujjayant & Moreaux, Michel & Tidball, Mabel, 2006. "Ordering the Extraction of Polluting Nonrenewable Resources," IDEI Working Papers 415, Institut d'Économie Industrielle (IDEI), Toulouse.
- Battisti, Riccardo & Corrado, Annalisa, 2005. "Evaluation of technical improvements of photovoltaic systems through life cycle assessment methodology," Energy, Elsevier, vol. 30(7), pages 952-967.
- David I. Stern, 2012. "Ecological Economics," Crawford School Research Papers 1203, Crawford School of Public Policy, The Australian National University.
- Robert J. Barro, 1998.
"Notes on Growth Accounting,"
NBER Working Papers
6654, National Bureau of Economic Research, Inc.
- Kenny, R. & Law, C. & Pearce, J.M., 2010. "Towards real energy economics: Energy policy driven by life-cycle carbon emission," Energy Policy, Elsevier, vol. 38(4), pages 1969-1978, April.
- Daniel Danxia Xie, 2011. "A Generalized Fact and Model of Long-Run Economic Growth: Kaldor Fact as a Special Case," Working Paper Series WP11-4, Peterson Institute for International Economics.
- Bassi, Andrea M. & Powers, Robert & Schoenberg, William, 2010. "An integrated approach to energy prospects for North America and the rest of the world," Energy Economics, Elsevier, vol. 32(1), pages 30-42, January.
- Dale Jorgenson & J. Steven Landefeld & William D. Nordhaus, 2006. "A New Architecture for the U.S. National Accounts," NBER Books, National Bureau of Economic Research, Inc, number jorg06-1, December.
- van Zon, Adriaan & Yetkiner, I. Hakan, 2003. "An endogenous growth model with embodied energy-saving technical change," Resource and Energy Economics, Elsevier, vol. 25(1), pages 81-103, February.
When requesting a correction, please mention this item's handle: RePEc:bde:wpaper:1217. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mar�a Beiro. Electronic Dissemination of Information Unit. Research Department. Banco de Espa�a)
If references are entirely missing, you can add them using this form.