Net energy analysis in a Ramsey–Hotelling growth model

Arturo Macías and Mariano Matilla-García

Energy Policy, 2015, vol. 86, issue C, 562-573

Abstract: This article presents a dynamic growth model with energy as an input in the production function. The available stock of energy resources is ordered by a quality parameter based on energy accounting: the “Energy Return on Energy Invested” (EROI). In our knowledge this is the first paper where EROI fits in a neoclassical growth model (with individual utility maximization and market equilibrium), establishing the economic use of “net energy analysis” on a firmer theoretical ground. All necessary concepts to link neoclassical economics and EROI are discussed before their use in the model, and a comparative static analysis of the steady states of a simplified version of the model is presented.

Keywords: EROI; Net energy analysis; Growth; Ramsey–Hotelling; Depletion (search for similar items in EconPapers)
JEL-codes: O13 Q01 Q41 Q43 Q57 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Working Paper: Net energy analysis in a Ramsey-Hotelling growth model (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:86:y:2015:i:c:p:562-573

DOI: 10.1016/j.enpol.2015.07.028

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