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Energy Theory of Value Literature Review
|This page was developed by the Queen's University Applied Sustainability Research Group.|
- 1 Gold Standard
- 2 Explanation and Reviews of Energy Standard of Value
- 3 Exergy Theories of Value
- 4 EROI
- 5 Economics and Energy
- 5.1 Value theory - Encyclopedia of Earth 
- 5.2 Burness, S., Cummings, R., Morris, G., & Paik, I. (1980). Thermodynamic and Economic Concepts as Related to Resource-Use Policies. 
- 5.3 Daly, H. E. (1986). Thermodynamic and Economic Concepts as Related to Resource-Use Policies: Comment 
- 5.4 Valero, A. (1981).Thermodynamics meets economics.
- 6 See Also
- 7 References
Krech, S., McNeill, J. R., & Merchant, C. (2004). Encyclopedia of World Environmental History: F-N. 
This entry in the encyclopedia briefly outlines gold and its uses, in particular as a currency. It outlines the properties of gold that make it ideal as a placeholder for standards of value.
Explanation and Reviews of Energy Standard of Value
Berndt, E. R. (1983). From technocracy to net energy analysis: engineers, economists, and recurring energy theories of value. 
This paper gives a comprehensive overview of the recurring “Energy theory of value”. It explains the premise behind the theory, including the movements which have put it forward. This includes the Technocrat movement of the 1930s and onwards, as well as the revival of the theory in the 1970s. The paper explains differences and similarities between various approaches to the energy theory of value in its different manifestations. Finally, it shows potential problems with the theory and hypothesizes as to why it recurs.
This paper lays out the relationship between embodied energy and economics. It begins by discussing net energy analysis, then describes the use of this analysis to create a net energy model of the US economy. A correlation between energy use and GDP of each economic sector is described and analyzed. The paper then draws conclusions about the validity of an energy theory of value based on the results of the analysis.
This thread includes a discussion of the energy theory of value. The two primary contributors discuss the theory and its advantages and drawbacks, as well as previous literature on the subject.
Exergy Theories of Value
This article discusses the economy in the context of natural resources and environmental impact, with particular emphasis on thermodynamics. It outlines the use of exergy to measure environmental impacts of both resource quality and extraction, as well as pollution streams. Economics is introduced as the study of scarcity with particular attention paid to resource scarcity. A review is conducted of the application of thermodynamics to economics. Scarcity and resource use is then discussed in the context of sustainability. Finally, the paper discusses policy implications of the above and directions for future research.
Hagens, N. J., & Mulder, K. (2008). A Framework for Energy Alternatives: Net Energy, Liebig’s Law and Multi-criteria Analysis. 
This book chapter explains net energy analysis and the various approaches to it. It outlines the use of EROI (Energy Return On Investment) as well as the previous energy use of humanity and the United States. The chapter touches on the energy theory of value but does not explain it in great detail. Alternative energy technologies are discussed in the context of EROI as well as quality of energy produced. EROI is also discussed with respect to extraction of non-renewable resources. Energy returns on other investments are also discussed in the context of Energy Return On X Invested (EROXI), such as Energy Return on Water Invested. Finally, biofuels are discussed from an EROI perspective.
Economics and Energy
This entry compares the energy theory of value to both classical and neoclassical economics. The article gives an overview of value theories in general, their purpose and what they are meant to do. Classical economics is outlined and discussed, along with neoclassical economics. Finally, the energy theory of value is compared and contrasted to the conventional theories.
Burness, S., Cummings, R., Morris, G., & Paik, I. (1980). Thermodynamic and Economic Concepts as Related to Resource-Use Policies. 
This article presents a view of thermodynamics from a “value” perspective, inquiring into the nature of value and how thermodynamics fits into economics. The authors provide a brief overview of thermodynamics to explain the concept to economists, and then challenge the idea that thermodynamics are not accurately reflected in the market. The article also briefly discusses resource use in the context of inter-generational equity.
Daly, H. E. (1986). Thermodynamic and Economic Concepts as Related to Resource-Use Policies: Comment 
This publication comments on and refutes some points brought up in Burness et al (1980). In particular, it differentiates between the laws of entropy and an energy theory of value, asserting that the laws of entropy must be followed but also that an energy theory of value would be ineffective.
Energy-based variables are insufficient for this combination; we need to incorporate the second law of thermodynamics. The term thermo-economic analysis indicates that this methodology combines a second-law (exergy) analysis with an economic one; both are conducted at the system component level.
- Krech, S., McNeill, J. R., & Merchant, C. (2004). Encyclopedia of World Environmental History: F-N. Routledge.
- Berndt, E. R. (1983). From technocracy to net energy analysis: engineers, economists, and recurring energy theories of value. Progress in Natural Resource Economics. Clarendon, Oxford, 337–366.
- Costanza, R. (1980). Embodied Energy and Economic Valuation. Science, 210(4475), 1219-1224. doi: 10.1126/science.210.4475.1219.
- The Oil Drum | EROEI Short #3: Price-Estimated EROEI. (n.d.). . Retrieved August 25, 2009, from http://www.theoildrum.com/node/2894.
- Ayres, R. U. (2001). Resources, scarcity, growth and the environment. Center for the Management of Environmental Resources, INSEAD, Boulevard de Constance, France, 10.
- Hagens, N. J., & Mulder, K. (2008). A Framework for Energy Alternatives: Net Energy, Liebig’s Law and Multi-criteria Analysis. In Biofuels, Solar and Wind as Renewable Energy Systems (pp. 295-319). Retrieved May 7, 2009, from http://dx.doi.org/10.1007/978-1-4020-8654-0_12.
- Value theory - Encyclopedia of Earth. (n.d.). Retrieved August 24, 2009, from http://www.eoearth.org/article/Value_theory.
- Burness, S., Cummings, R., Morris, G., & Paik, I. (1980). Thermodynamic and Economic Concepts as Related to Resource-Use Policies. Land Economics, 56(1), 1-9. doi: 10.2307/3145824
- Daly, H. E. (1986). Thermodynamic and Economic Concepts as Related to Resource-Use Policies: Comment. Land Economics, 62(3), 319-322. doi: 10.2307/3146396.
- Valero, A. (1981).Thermodynamics meets economics.Mechanical Engineering-CIME, Tuesday, August 1 1989