Overview

For the past 150 years, economics has been treated as a social science in which economies are modeled as a circular flow of income between producers and consumers. In this “perpetual motion” of interactions between firms that produce and households that consume, little or no accounting is given of the flow of energy and materials from the environment and back again. In the standard economic model, energy and matter are completely recycled in these transactions, and economic activity is seemingly exempt from the Second Law of Thermodynamics. As we enter the second half of the age of oil, and as energy supplies and the environmental impacts of energy production and consumption become major issues on the world stage, this exemption appears illusory at best. In Energy and the Wealth of Nations, concepts such as energy return on investment (EROI) provide powerful insights into the real balance sheets that drive our “petroleum economy.” Hall and Klitgaard explore the relation between energy and the wealth explosion of the 20th century, the failure of markets to recognize or efficiently allocate diminishing resources, the economic consequences of peak oil, the EROI for finding and exploiting new oil fields, and whether alternative energy technologies such as wind and solar power meet the minimum EROI requirements needed to run our society as we know it. This book is an essential read for all scientists and economists who have recognized the urgent need for a more scientific, unified approach to economics in an energy-constrained world, and serves as an ideal teaching text for the growing number of courses, such as the authors’ own, on the role of energy in society.

Full Product Details

9781441993977

Table of Contents

Reviews

[T]his is an important book. It should also prove useful to many involved with energy-related issues, and to students thereof. Charles Hall has been writing about biophysical economics for upwards of thirty years and his point of view, and its treatment in this book, is compelling...[T]he energy side, the biophysical economics side, of the book can be warmly praised in general...So too can the treatment of basic science needs to understand the subject, the required quantitative skills, the proper use of mathematics, and the pros and cons of models-the need to distinguish between scientifically robust models and neat-looking mathematical models...[T]he case for biophysical economics, the importance of energy as a factor of production, its relevance to the rise and fall of past cultures, and the stresses that the provision and use of energy will place upon the world in future are well argued in this book and for that reason it can be recommended...As a students' textbook it will also be found of considerable value, not least for the excellent questions which appear at the end of each chapter. --Michael Jefferson, Energy Policy (DOI: 10.1016/j.enpol.2011.12.011) ...offer[s] us a well-researched and well-written work that addresses how we might rethink the foundational assumptions and tools of the field of economics itself...The analysis the authors provide regarding the energy challenges we face is among the most clear, accessible, concise, and well-supported I have seen...Faculty and students from multiple disciplinary and interdisciplinary backgrounds will find Energy and the Wealth of Nations to be a highly accessible, informative well-argued, well-supported, insightful, and important read. Textual material is supplemented by many graphical representations of concepts and data and by useful photographs, making this work accessible to readers with diverse learning styles. I highly recommend this book principally as a course text but also as a relevant book for anyone interested in sustainability. It is both engaging and thorough-a combination that can be difficult to achieve. --Tina Evans, Journal of Sustainability Education, March 19, 2012 (http://www.jsedimensions.org/wordpress/content/review-of-energy-and-the-wealth-of-nations-understanding-the-biophysical-economy-by-charles-a-s-hall-and-kent-a-klitgaard-2012-springer-407-pp-isbn-978-1-4419-9397-7_2012_03/) The authors of Energy and the Wealth of Nations are doing all of us a favor by compiling what is known about energy biophysics and its relevance to the viability of the economic system worldwide, and by forcefully arguing for more reliance on scientific data to inform the political policy formulation...[C]ontributes to the inexorable process whereby truth and reason prevail in the long-term. The language is technical but readable, and the book is good study material for all concerned citizens...[R]ecommended for college students taking courses in sustainability, the environmental sciences, and sustainable engineering. In particular, it is highly recommended for all leaders involved in Earth Day 2012, the International Year of Sustainable Energy for All, and the Rio+20 Conference on Sustainable Development. --Luis T. Gutierrez, Mother Pelican, Vol. 8, No. 3, March 2012 (http://www.pelicanweb.org/solisustv08n03page1.html) ...excellent...covers in depth a wide range of topics...contains a wealth of information and a lot of useful references. --Gail Tverberg, Our Finite World (http://ourfiniteworld.com/2012/04/13/two-energy-books-of-interest/) ...quite readable, addressing many difficulties that the energy world (including renewable energy) faces; not because current energy sources are highly subsidized, but because much of the current Social Science of Economics is wrong and harmful...The facts presented are quite revealing, and reading the book is a must if you want to understand the past, current or future problems in energy...The book proposes changes in economic theory to account for the real world, recognizing the value of nature and the limitations of its resources. The goal is to make the social science of economics helpful for leaving a livable world to our descendants, instead of leaving them a depleted, polluted, overheated and overpopulated garbage dump...If you want to be involved with the future, read the book. --Francis de Winter, Solar Today, March/April 2012 Hall and Klitgaard's work has important implications for financial planners...The more planners understand about how the world works, what constraints may be looming, and how to evaluate various scenarios, the better will be the advice we give our clients. Just as planners have embraced behavioral economics for the insights it provides, learning about biophysical economics will add considerably to our skills and our wisdom. --Richard Vodra, Advisor Perspectives, 5 June 2012, http://www.advisorperspectives.com/newsletters12/Energy_and_the_Wealth_of_Nations.php It was difficult to put this book down because it offers such a compelling story about how our world economy is so completely empowered by the ability to find, extract and consume energy...Energy and the Wealth of Nations is worthwhile read[ing] for anyone who is interested in gaining a deeper understanding of the 'science' behind economic growth and the critical yet often misunderstood role that energy plays in our world economy. Engineers involved in the electric power industry may be especially interested in the influence of biophysical economic principles and, especially EROI, on future elctric power supply and transport options. --Jim MacInnes, IEEE-USA Today's Engineer, June 2012, http://www.todaysengineer.org/2012/Jun/Book-Review.asp

[T]his is an important book. It should also prove useful to many involved with energy-related issues, and to students thereof. Charles Hall has been writing about biophysical economics for upwards of thirty years and his point of view, and its treatment in this book, is compelling...[T]he energy side, the biophysical economics side, of the book can be warmly praised in general...So too can the treatment of basic science needs to understand the subject, the required quantitative skills, the proper use of mathematics, and the pros and cons of models-the need to distinguish between scientifically robust models and neat-looking mathematical models...[T]he case for biophysical economics, the importance of energy as a factor of production, its relevance to the rise and fall of past cultures, and the stresses that the provision and use of energy will place upon the world in future are well argued in this book and for that reason it can be recommended...As a students' textbook it will also be found of considerable value, not least for the excellent questions which appear at the end of each chapter. --Michael Jefferson, Energy Policy (DOI: 10.1016/j.enpol.2011.12.011) ...offer[s] us a well-researched and well-written work that addresses how we might rethink the foundational assumptions and tools of the field of economics itself...The analysis the authors provide regarding the energy challenges we face is among the most clear, accessible, concise, and well-supported I have seen...Faculty and students from multiple disciplinary and interdisciplinary backgrounds will find Energy and the Wealth of Nations to be a highly accessible, informative well-argued, well-supported, insightful, and important read. Textual material is supplemented by many graphical representations of concepts and data and by useful photographs, making this work accessible to readers with diverse learning styles. I highly recommend this book principally as a course text but also as a relevant book for anyone interested in sustainability. It is both engaging and thorough-a combination that can be difficult to achieve. --Tina Evans, Journal of Sustainability Education, March 19, 2012 (http://www.jsedimensions.org/wordpress/content/review-of-energy-and-the-wealth-of-nations-understanding-the-biophysical-economy-by-charles-a-s-hall-and-kent-a-klitgaard-2012-springer-407-pp-isbn-978-1-4419-9397-7_2012_03/) The authors of Energy and the Wealth of Nations are doing all of us a favor by compiling what is known about energy biophysics and its relevance to the viability of the economic system worldwide, and by forcefully arguing for more reliance on scientific data to inform the political policy formulation...[C]ontributes to the inexorable process whereby truth and reason prevail in the long-term. The language is technical but readable, and the book is good study material for all concerned citizens...[R]ecommended for college students taking courses in sustainability, the environmental sciences, and sustainable engineering. In particular, it is highly recommended for all leaders involved in Earth Day 2012, the International Year of Sustainable Energy for All, and the Rio+20 Conference on Sustainable Development. --Luis T. Gutierrez, Mother Pelican, Vol. 8, No. 3, March 2012 (http://www.pelicanweb.org/solisustv08n03page1.html) ...excellent...covers in depth a wide range of topics...contains a wealth of information and a lot of useful references. --Gail Tverberg, Our Finite World (http://ourfiniteworld.com/2012/04/13/two-energy-books-of-interest/) ...quite readable, addressing many difficulties that the energy world (including renewable energy) faces; not because current energy sources are highly subsidized, but because much of the current Social Science of Economics is wrong and harmful...The facts presented are quite revealing, and reading the book is a must if you want to understand the past, current or future problems in energy...The book proposes changes in economic theory to account for the real world, recognizing the value of nature and the limitations of its resources. The goal is to make the social science of economics helpful for leaving a livable world to our descendants, instead of leaving them a depleted, polluted, overheated and overpopulated garbage dump...If you want to be involved with the future, read the book. --Francis de Winter, Solar Today, March/April 2012 Hall and Klitgaard's work has important implications for financial planners...The more planners understand about how the world works, what constraints may be looming, and how to evaluate various scenarios, the better will be the advice we give our clients. Just as planners have embraced behavioral economics for the insights it provides, learning about biophysical economics will add considerably to our skills and our wisdom. --Richard Vodra, Advisor Perspectives, 5 June 2012, http://www.advisorperspectives.com/newsletters12/Energy_and_the_Wealth_of_Nations.php It was difficult to put this book down because it offers such a compelling story about how our world economy is so completely empowered by the ability to find, extract and consume energy...Energy and the Wealth of Nations is worthwhile read[ing] for anyone who is interested in gaining a deeper understanding of the 'science' behind economic growth and the critical yet often misunderstood role that energy plays in our world economy. Engineers involved in the electric power industry may be especially interested in the influence of biophysical economic principles and, especially EROI, on future elctric power supply and transport options. --Jim MacInnes, IEEE-USA Today's Engineer, June 2012, http://www.todaysengineer.org/2012/Jun/Book-Review.asp ...offer[s] a broad range of compelling arguments-and diverse data-to emphasize energy's deep significance to the world's economic health...Energy and the Wealth of Nations is an engaging, stimulating, and laudably agitating read. -Robert Herendeen, BioScience, Vol. 62, No. 7, July 2012 (http://www.jstor.org/stable/10.1525/bio.2012.62.7.12)

[T]his is an important book. It should also prove useful to many involved with energy-related issues, and to students thereof. Charles Hall has been writing about biophysical economics for upwards of thirty years and his point of view, and its treatment in this book, is compelling!.[T]he energy side, the biophysical economics side, of the book can be warmly praised in general!..So too can the treatment of basic science needs to understand the subject, the required quantitative skills, the proper use of mathematics, and the pros and cons of models--the need to distinguish between scientifically robust models and neat-looking mathematical models!.[T]he case for biophysical economics, the importance of energy as a factor of production, its relevance to the rise and fall of past cultures, and the stresses that the provision and use of energy will place upon the world in future are well argued in this book and for that reason it can be recommended!.As a students' textbook it will also be found of considerable value, not least for the excellent questions which appear at the end of each chapter. --Michael Jefferson, Energy Policy (DOI: 10.1016/j.enpol.2011.12.011)

Author Information

Charles A.S. Hall is a Systems Ecologist who received his PhD under Howard T. Odum at the University of North Carolina at Chapel Hill. Dr. Hall is the author or editor of seven books and more than 250 scholarly articles. He is best known for his development of the concept of EROI, or energy return on investment, which is an examination of how organisms, including humans, invest energy into obtaining additional energy to improve biotic or social fitness. He has applied these approaches to fish migrations, carbon balance, tropical land use change and the extraction of petroleum and other fuels in both natural and human-dominated ecosystems. Presently he is developing a new field, biophysical economics, as a supplement or alternative to conventional neoclassical economics, while applying systems and EROI thinking to a broad series of resource and economic issues. Kent A. Klitgaard is Professor of Economics and the Patti McGill Peterson Professor of Social Sciences at Wells College in Aurora, New York, where he has taught since 1991. Kent received his Bachelor's degree at San Diego State University and his Master's and PhD at the University of New Hampshire. At Wells, he teaches a diverse array of courses including the History of Economic Thought, Political Economy, Ecological Economics, The Economics of Energy, Technology and the Labor Process, and Microeconomic Theory, and is a co-founder of the Environmental Studies Program. Kent is active in the International Society for Ecological Economics, and is a founding member of the International Society for Biophysical Economics. Recently, his interests have turned towards the degrowth movement, and he has published multiple papers on the subject for Research and Degrowth. He has two children, and is interested in the outdoors in general: from hiking to beach walking to the occasional round of golf (despite the high energy use of golf courses). Kent is a Californian who still surfs the frigid waters of New England when he gets a chance. This is his first book.

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