Thermodynamic and Economic Concepts as Related to Resource-Use Policies
Author(s)
Stuart Burness, Ronald Cummings, Glenn Morris and Inja Paik
Abstract
A few economists have begun to question the effectiveness of market-based analysis in dealing with resource issues, and to examine the possibility that market solutions do indeed ignore physical laws. The need for clarifying these points is not merely academic. Many people have argued that these physical laws have a direct relevance to resource policy. This paper explores the interface between thermodynamic and economic concepts, and suggests questions that warrant consideration if a compelling case is to be made that resource policies can be improved via the introduction of thermodynamic laws. [Note: A response to this article by Daly, et al. is also in the SSL.]
