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Energy as a limiting factor of economic growth: the profit rate channel

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  • Alban Pellegris

    (UR2 UFRSS - Université de Rennes 2 - UFR Sciences sociales - UR2 - Université de Rennes 2)

Abstract

Within ecological economics, there is a diversity of traditions highlighting the fundamental role of energy in the growth process. Faced with the limitations of neo-thermodynamic (Ayres, Warr...) and neo-physiocratic (Court, Hall...) approaches, our work proposes to consider another paradigm: Marxist political economy. The latter allows us to theoretically identify a profit rate channel through which relative energy prices affect the macroeconomic profit rate. Econometric work carried out over the period 1995-2019 on a panel of 16 countries confirms its existence. These results are discussed in the light of recent literature on the burden of the energy bill.

Suggested Citation

  • Alban Pellegris, 2023. "Energy as a limiting factor of economic growth: the profit rate channel," Working Papers hal-04120296, HAL.
    • Handle: RePEc:hal:wpaper:hal-04120296
    Note: View the original document on HAL open archive server: https://univ-rennes2.hal.science/hal-04120296
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    References listed on IDEAS

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    4. Joseph Stiglitz, 1974. "Growth with Exhaustible Natural Resources: Efficient and Optimal Growth Paths," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 123-137.
    5. Bashmakov, Igor, 2007. "Three laws of energy transitions," Energy Policy, Elsevier, vol. 35(7), pages 3583-3594, July.
    6. Santos, João & Domingos, Tiago & Sousa, Tânia & St. Aubyn, Miguel, 2018. "Useful Exergy Is Key in Obtaining Plausible Aggregate Production Functions and Recognizing the Role of Energy in Economic Growth: Portugal 1960–2009," Ecological Economics, Elsevier, vol. 148(C), pages 103-120.
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    Keywords

    energy bill; economic growth; marxist political economy; energy consumption;
    All these keywords.

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