The Second Law of Economics

Energy, Entropy, and the Origins of Wealth

  • Reiner Kümmel
Part of the The Frontiers Collection book series (FRONTCOLL)

Table of contents

  1. Front Matter
    Pages i-xix
  2. Reiner Kümmel
    Pages 1-27
  3. Reiner Kümmel
    Pages 29-111
  4. Reiner Kümmel
    Pages 113-169
  5. Reiner Kümmel
    Pages 171-273
  6. Reiner Kümmel
    Pages 275-282
  7. Back Matter
    Pages 283-293

About this book

Introduction

Nothing happens in the world without energy conversion and entropy production.  These fundamental natural laws are familiar to most of us when applied to the evolution of stars, biological processes, or the working of an internal combustion engine, but what about industrial economies and wealth production, or their constant companion, pollution?  Does economics conform to the First and the Second  Law of Thermodynamics?  In this important book, Reiner Kümmel takes us on a fascinating tour of these laws and their influence on natural, technological, and social evolution.  Analyzing economic growth in Germany, Japan, and the United States in light of technological constraints on capital, labor, and energy, Professor Kümmel upends conventional economic wisdom by showing that the  productive power of energy far outweighs its small share of costs, while for labor just the opposite is true.  Wealth creation by energy conversion is accompanied and limited by polluting emissions that are coupled to entropy production.   These facts constitute the Second Law of Economics. They take on unprecedented  importance in a world that is facing peak oil, debt-driven economic turmoil, and threats from pollution and climate change.  They complement the First Law of Economics: Wealth is allocated on markets, and the legal framework determines the outcome.  By applying the First and Second Law we understand the true origins of wealth production, the issues that imperil the goal of sustainable development, and the technological options that are compatible both with this goal and with natural laws.  The critical role of energy  and entropy in the productive sectors of the economy must be realized if we are to create a road map that avoids a Dark Age of shrinking natural resources, environmental degradation, and increasing social tensions.

Keywords

Economic growth Econophysics Energy accounting Energy analysis Energy economics Entropy and climate change Entropy and pollution Output elasticities

Authors and affiliations

  • Reiner Kümmel
    • 1
  1. 1., Inst for Theoretical Physics & AstrophysUniversity of WürzburgWürzburgGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-1-4419-9365-6
  • Copyright Information Springer Science+Business Media, LLC 2011
  • Publisher Name Springer, New York, NY
  • eBook Packages Physics and Astronomy
  • Print ISBN 978-1-4419-9364-9
  • Online ISBN 978-1-4419-9365-6
  • Series Print ISSN 1612-3018
  • About this book