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Thermodynamics on Main Street: When entropy really counts in economics

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  • Fisk, David

Abstract

The implications of thermodynamics for economic theory have been a source of debate for 40Â years. Adopting the framing used in modern engineering rather than physics suggests that the market place has already recognised most of these thermodynamic truths as self-evident rather than challenging basic concepts. The exception is the relatively small market for heat where the idea of thermodynamic grade, conveniently represented by the exergy or available work content of a heat source, exposes inconsistencies especially in monopoly supply and economic instruments. Earlier commentators were not wrong in the thrust of their criticisms of economic theory but may have been overly elaborate in their attack.

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  • Fisk, David, 2011. "Thermodynamics on Main Street: When entropy really counts in economics," Ecological Economics, Elsevier, vol. 70(11), pages 1931-1936, September.
    • Handle: RePEc:eee:ecolec:v:70:y:2011:i:11:p:1931-1936
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    References listed on IDEAS

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    RePEc Biblio mentions

    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Schools of Economic Thought, Epistemology of Economics > Heterodox Approaches > Thermoeconomics

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    2. Grégoire Wallenborn, 2018. "Rebounds Are Structural Effects of Infrastructures and Markets," ULB Institutional Repository 2013/277828, ULB -- Universite Libre de Bruxelles.
    3. Florina BRAN & Ildiko IOAN & Carmen Valentina RADULESCU, 2014. "Low Entropy: Creating Physical Basis For Economic Value By Environmental Policy Tools," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 3(2), pages 1-3, July.

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