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Understanding the global economic crisis: A biophysical perspective

Mark T. Brown and Sergio Ulgiati

Ecological Modelling, 2011, vol. 223, issue 1, 4-13

Abstract: The recent economic meltdown worldwide has reinforced our understanding of the effects of decoupling economic growth, monetary policy, and resources. Concern for peak oil and suggestions that it may have contributed to the global economic woes as well as over concern for the banking fraud may be adding confusion over the underlying causes and sending a misleading message to the public and ultimately to policy makers. Viewing the economy as simply a circulation of money that can be manipulated to increase spending and therefore consume our way out of the current economic situation, is courting disaster by deluding the public that the solution lies in simple adjustments to the current monetary system. Similarly, emphasizing that energy is the problem and that the solution can be found with another energy source is probably counterproductive in the short run and may be disastrous in the long run. The recent nuclear accident in Japan seriously calls into question increased dependence on nuclear energy and renewable energy sources, in the majority, have low net yields and are unevenly distributed worldwide.

Keywords: Economic growth; Societal metabolism; Energy; Emergy (search for similar items in EconPapers)
Date: 2011
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Handle: RePEc:eee:ecomod:v:223:y:2011:i:1:p:4-13