Misuse of thermodynamic entropy in economics

Andrey V. Kovalev

Energy, 2016, vol. 100, issue C, 129-136

Abstract: The direct relationship between thermodynamic entropy and economic scarcity is only valid for a thermodynamically isolated economy. References to the second law of thermodynamics in economics within the context of scarcity ignore the fact that the earth is not an isolated system. The earth interacts with external sources and sinks of entropy and the resulting total entropy fluctuates around a constant. Even if the mankind finally proves unable to recycle industrial waste and close the technological cycle, the economic disruption caused by the depletion of natural resources may happen while the total thermodynamic entropy of the ecosystem remains essentially at the present level, because the transfer of chemically refined products may not increase significantly the total entropy, but it may decrease their recyclability.

Keywords: Entropy; Economic scarcity; Second law of thermodynamics; Red mud; Bayer process; Recyclability (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:100:y:2016:i:c:p:129-136

DOI: 10.1016/j.energy.2016.01.071

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