The Second Law of Economics [electronic resource] : Energy, Entropy, and the Origins of Wealth /
Kümmel, Reiner.author.
Nothing happens in the world without energy conversion and entropy production.  These fundamental natural laws are familiar to most of us when applied to the evolution of stars, biological processes, or the working of an internal combustion engine, but what about industrial economies and wealth production, or their constant companion, pollution?  Does economics conform to the First and the Second  Law of Thermodynamics?  In this important book, Reiner Kümmel takes us on a fascinating tour of these laws and their influence on natural, technological, and social evolution.  Analyzing economic growth in Germany, Japan, and the United States in light of technological constraints on capital, labor, and energy, Professor Kümmel upends conventional economic wisdom by showing that the  productive power of energy far outweighs its small share of costs, while for labor just the opposite is true.  Wealth creation by energy conversion is accompanied and limited by polluting emissions that are coupled to entropy production.   These facts constitute the Second Law of Economics. They take on unprecedented  importance in a world that is facing peak oil, debt-driven economic turmoil, and threats from pollution and climate change.  They complement the First Law of Economics: Wealth is allocated on markets, and the legal framework determines the outcome.  By applying the First and Second Law we understand the true origins of wealth production, the issues that imperil the goal of sustainable development, and the technological options that are compatible both with this goal and with natural laws.  The critical role of energy  and entropy in the productive sectors of the economy must be realized if we are to create a road map that avoids a Dark Age of shrinking natural resources, environmental degradation, and increasing social tensions.
Description based upon print version of record.
THE SECOND LAW OFECONOMICS; Foreword; Preface; Acknowledgements; Contents; Chapter 1 Prologue: Time Travel with Abel; 1.1 From the Big Bang to the Sun; 1.2 Light on Earth; 1.2.1 As Life Goes; 1.2.2 Fire and Grain; 1.3 Ancient Empires; 1.4 Wind Power, Gunpowder, and Wood; 1.5 Industrial Revolution; 1.6 Golden Age; 1.7 Outlook; References; Chapter 2 Energy; 2.1 Understanding the Prime Mover; 2.1.1 How the Energy Concept Evolved; 2.1.2 Energy for All and Forever; 2.1.3 Energy Quantity and Quality; 2.2 Sun and Earth; 2.2.1 Energy Production in the Sun; 2.2.2 The Natural Greenhouse Effect
2.2.3 Solar Activity and Climate2.2.4 Photosynthesis, Respiration, and Food Production; 2.3 Amplifiers of Muscles and Brain; 2.3.1 Heat Engines; 2.3.1.1 Steam Engine and Modern Heat Engines; 2.3.1.2 Carnot's Ideal Heat Engine; 2.3.1.3 Historical Note: Newcomen's and Watt's Steam Engines; 2.3.2 Transistors; 2.4 Energy Services; 2.4.1 Freedom from Toil; 2.4.2 Comfort, Mobility, Information; 2.4.3 Political Power; 2.5 Consumption, And What Is Left; 2.5.1 Consumption of Energy Carriers; 2.5.2 Reserves and Resources of Fossil and Nuclear Fuels; 2.5.3 Renewable Energies; 2.5.3.1 A Global Scenario
2.5.3.2 Individual Potentials2.5.3.3 Energy Payback Times, Harvest Factors, and Energy Return on Investment; 2.5.4 Energy Conservation; 2.6 Technological Perspectives; 2.6.1 Fission; 2.6.2 Fusion; 2.6.3 Solar Power from Deserts and Space; 2.6.3.1 Solar Thermal Power Plants in Deserts; 2.6.3.2 Solar Power Satellites and Space Industrialization; Appendix 1: Basic Forms of Energy; Appendix 2: Energy Units; References; Chapter 3 Entropy; 3.1 No Free Lunch; 3.2 Equipartition, the Toddler, and Entropy; 3.3 States of Systems; 3.4 The Way Things Change; 3.4.1 Driving Toward Disorder
3.4.2 Haste Makes Waste: Irreversible Processes3.5 Arrow of Time; 3.6 Entropy Production and Emissions; 3.6.1 Sources and Substances; 3.6.2 Anthropogenic Greenhouse Effect; 3.6.3 Pollution Control and Heat Equivalents of NOx, SO2, CO2, and Nuclear Waste; 3.6.3.1 Physical and Chemical Boundaries for Pollution Control Processes; 3.6.3.2 Waste Heat Analysis in First Order; 3.6.3.3 HEONS for NOx, SO2, and CO2 from a Coal Power Plant; 3.6.3.4 HEONS for Radioactive Waste from a Nuclear Power Plant; Appendix: Nonequilibrium Thermodynamics and the Second Law; References; Chapter 4 Economy
4.1 Complementary Perspectives on the Economy4.2 Energy, Entropy, and the Growth Paradigm; 4.3 Preanalytic Vision: The Law of Diminishing Returns; 4.4 How Technological Constraints Change Economic Equilibrium; 4.4.1 Output Elasticities; 4.4.2 Shadow Prices; 4.4.2.1 Profit Maximization; 4.4.2.2 Intertemporal Welfare Maximization; 4.5 The Second Law of Economics; 4.5.1 Levels of Wealth Creation; 4.5.2 The Technological Constraints on Capital, Labor,and Energy; 4.5.3 Modeling Production; 4.5.4 Economic Growth in Germany, Japan, and the USA
4.5.5 The Productive Powers of Capital, Labor, Energy, and Creativity
Includes bibliographical references and index.
Nothing happens in the world without energy conversion and entropy production.  These fundamental natural laws are familiar to most of us when applied to the evolution of stars, biological processes, or the working of an internal combustion engine, but what about industrial economies and wealth production, or their constant companion, pollution?  Does economics conform to the First and the Second  Law of Thermodynamics?  In this important book, Reiner Kümmel takes us on a fascinating tour of these laws and their influence on natural, technological, and social evolution.  Analyzing economic growth in Germany, Japan, and the United States in light of technological constraints on capital, labor, and energy, Professor Kümmel upends conventional economic wisdom by showing that the  productive power of energy far outweighs its small share of costs, while for labor just the opposite is true.  Wealth creation by energy conversion is accompanied and limited by polluting emissions that are coupled to entropy production.   These facts constitute the Second Law of Economics. They take on unprecedented  importance in a world that is facing peak oil, debt-driven economic turmoil, and threats from pollution and climate change.  They complement the First Law of Economics: Wealth is allocated on markets, and the legal framework determines the outcome.  By applying the First and Second Law we understand the true origins of wealth production, the issues that imperil the goal of sustainable development, and the technological options that are compatible both with this goal and with natural laws.  The critical role of energy  and entropy in the productive sectors of the economy must be realized if we are to create a road map that avoids a Dark Age of shrinking natural resources, environmental degradation, and increasing social tensions.
Sociophysics.
Econophysics.
Energy policy.
Energy and state.
Sustainable development.
Environmental economics.
Thermodynamics.
Data-driven Science, Modeling and Theory Building.
Energy Policy, Economics and Management.
Energy Policy, Economics and Management.
Sustainable Development.
Environmental Economics.
Thermodynamics.