The biophysical systems perspective sees the economy in terms of the physical activities that take place in it, while the political-economic perspective focuses on the social aspects of the activities of society. From the biophysical point of view, the continuing transformation of available and unavailable energy resources in accordance with the Second Law of Thermodynamics is the fundamental fact of life in the functioning of all economies; there is no known economic process that does not begin by using some sort of raw material and eventually generate waste. The interaction between energy and matter is the basis for life itself, including human life and culture. The inclusion of energy in a world view based on a physical systems perspective can therefore help to clarify the relationship between a social system and its environment. Energy analysis may also help us see where the biophysical and political-economic viewpoints differ, and indicate areas in which conventional assumptions may need deeper examination.
