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energy economics

Climate and Prosperity: Two Roads Converge in Paris

November 26, 2015 by Tom Schueneman

Climate Change and Economic Health

Next week delegates, ministers, heads-of-state and leaders of civil society meet in Paris at the COP 21 conference in hopes of striking an international commitment limiting global warming to 2 degrees Celsius from pre-industrial levels.[read more]

The Customer is Always Right: Picking Advanced Energy Up and Down Supply Chain

October 27, 2015 by Lexie Briggs

Advanced Energy and Supply Chains

Here at Advanced Energy Perspectives, the trend has been unmistakable. Large, multi-million and multi-billion dollar businesses are choosing advanced energy over alternatives. From manufacturing giants like AEE member Siemens to consumer-facing brands like Apple, Nike, Starbucks, and Proctor & Gamble.[read more]

The Papal Encyclical and Climate Change Policy

October 6, 2015 by Robert Stavins

Coral Davenport, writing in the New York Times, was the first in the press to note that the encyclical on the environment released by Pope Francis, with tremendous praise from diverse quarters, “is as much an indictment of the global economic order as it is an argument for the world to confront climate change.”[read more]

Deflationary Collapse Ahead?

August 28, 2015 by Gail Tverberg

Deflation and Energy Economics

This mismatch between rising costs of oil production and stagnating wages is what has been happening. The unaffordability problem can be hidden by a rising amount of debt for a while (since adding cheap debt helps make unaffordable big items seem affordable), but this scheme cannot go on forever.[read more]

Are We Measuring Energy Use All Wrong?

June 8, 2015 by Stephen Lacey

We measure energy use with a commodity-based approach -- monitoring electrons, therms and gallons. But is there a better way to gauge the efficiency of the economy? Economist Skip Laitner explores a method based on measuring "exergy," which shows that America's economy is only 14% efficient.[read more]

Why We Have an Oversupply of Almost Everything, From Oil to Labor to Capital

May 9, 2015 by Gail Tverberg

Supply and Risk

Global oversupply extends beyond commodities, elevating deflation risk. To me, this is a very serious issue, quite likely signaling that we are reaching what has been called Limits to Growth, a situation modeled in 1972 in a book by that name. What happens is that economic growth eventually runs into limits.[read more]

Putting the Real Story of Energy and the Economy Together

April 17, 2015 by Gail Tverberg

Workers and Energy Economics

What is the real story of energy and the economy? We hear two predominant energy stories. One is the story economists tell: The economy can grow forever; energy shortages will have no impact on the economy. We can simply substitute other forms of energy, or do without.[read more]

The Decoupling of Energy, Carbon, and GDP in the United States

March 20, 2015 by Cutler Cleveland

Decoupling and Energy Economics

The recent announcement by the International Energy Agency that CO2 emissions fell in 2014 while GDP expanded was welcome news. The decoupling of carbon and economic activity has been a steady trend for a long time in the United States.[read more]

Is This the Key to Australia's Economic and Environmental Success?

March 11, 2015 by Nigel Morris

I stumbled across an annual report called the Global Energy Architecture Performance Index, produced by the World Economic Forum. It pulls together an array of data, opinion and information and produces an index for decision-makers to “holistically benchmark a nations’ energy systems performance.”[read more]

Role of Wages of the Common Worker in Oil Prices, Collapse

February 27, 2015 by Gail Tverberg

Wages and Oil Prices

In their book Secular Cycles, Peter Turchin and Surgey Nefedof point out the important role falling wages of the common workers played in early collapses. I got to thinking that this might be an issue with our current situation as well, including the low level of oil prices.[read more]

Oil Import Dependence Not Aways Economic Disadvantage, Study Finds  

February 27, 2015 by Roman Kilisek

Oil Dependence and Economics

According to research by the Cologne Institute for Economic Research energy imports should not be “understood as a threat to the security of energy supply and an economic disadvantage” per se. The study finds that conclusion simplistic and points out that energy security depends on open and integrated markets.[read more]

Shale Boom: Impacts in the U.S. and Beyond

February 20, 2015 by Joseph Nyangon

The unconventional oil and gas boom has shaken up energy markets in the U.S. and beyond. Across many American states, the energy sector is experiencing a number of changes far larger than in its history including improvements in policies, business models, technologies, and investment options.[read more]

A New Theory of Energy and the Economy, Part 3: The Problem of Debt as We Reach Oil Limits

February 13, 2015 by Gail Tverberg

Debt and Oil Limits

In some sense, debt and other promises are what hold together our networked economy. Debt and other promises allow division of labor, because each person can “pay” the others in the group for their labor with a promise of some sort, rather than with an immediate payment in goods.[read more]

A New Theory of Energy and the Economy, Part 2: Showing the Long-Term GDP-Energy Tie

February 6, 2015 by Gail Tverberg

Energy and Gross Domestic Product

Economies that can leverage their human energy with inexpensive supplemental energy gain an advantage over other economies. If this energy becomes high cost, we will see that countries lose their advantage over other countries, and their economic growth rate slows.[read more]

A New Theory of Energy and the Economy, Part 1: Generating Economic Growth

January 24, 2015 by Gail Tverberg

Energy Economics and Growth

How does the economy really work? In my view, there are many erroneous theories in published literature. I have been investigating this topic and have come to the conclusion that both energy and debt play an extremely important role in an economic system.[read more]