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Economic Growth with Energy

  • Alam, M. Shahid

This paper works out some of the basic properties of an economy with energy as a factor of production. The economy now consists of streams of energy conversions that direct energy to the production of goods and services. The focus on energy generates a variety of insights. It yields a new taxonomy of economies and economic activities; allows a better grasp of the tasks performed by labor and capital; raises the prospect of examining growth as the speeding up of machines; and identifies greater use of energy as an important source of growth. In addition, we use these results to explain the near stagnation in living standards in agrarian economies in the millennia before 1800, and the dramatic acceleration in growth since that date.

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File URL: http://mpra.ub.uni-muenchen.de/1260/1/MPRA_paper_1260.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1260.

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Date of creation: 25 Dec 2006
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Handle: RePEc:pra:mprapa:1260
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  1. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  2. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  3. repec:cup:cbooks:9780521577014 is not listed on IDEAS
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