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Back to the Future of Green Powered Economies

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  • Juan Moreno Cruz
  • M. Scott Taylor

Abstract

The purpose of this paper is to introduce the concept of power density [Watts/m²] into economics. By introducing an explicit spatial structure into a simple general equilibrium model we are able to show how the power density of available energy resources determines the extent of energy exploitation, the density of urban agglomerations, and the peak level of income per capita. Using a simple Malthusian model to sort population across geographic space we demonstrate how the density of available energy supplies creates density in energy demands by agglomerating economic activity. We label this result the density-creates-density hypothesis and evaluate it using data from pre and post fossil-fuel England from 1086 to 1801.

Suggested Citation

  • Juan Moreno Cruz & M. Scott Taylor, 2012. "Back to the Future of Green Powered Economies," NBER Working Papers 18236, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:18236
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    Cited by:

    1. Moreno-Cruz, Juan & Taylor, M. Scott, 2017. "An energy-centric theory of agglomeration," Journal of Environmental Economics and Management, Elsevier, vol. 84(C), pages 153-172.
    2. Lagerlöf, Nils-Petter, 2016. "Born free," Journal of Development Economics, Elsevier, vol. 121(C), pages 1-10.
    3. M. Scott Taylor & Moreno, "undated". "A Spatial Approach to Energy Economics: Theory, Measurement and Empirics," Working Papers 2014-67, Department of Economics, University of Calgary, revised 29 Sep 2014.
    4. repec:clg:wpaper:2013-07 is not listed on IDEAS
    5. McCombie, Charles & Jefferson, Michael, 2016. "Renewable and nuclear electricity: Comparison of environmental impacts," Energy Policy, Elsevier, vol. 96(C), pages 758-769.
    6. M. Scott Taylor & Juan Moreno Cruz, "undated". "A Spatial Approach to Energy Economics," Working Papers 2014-68, Department of Economics, University of Calgary, revised 29 Sep 2014.

    More about this item

    JEL classification:

    • N0 - Economic History - - General
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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