Thermodynamics and the Economics of Sustainability

Abstract

This paper argues that the concept of economic sustainability, which can be formulated in principle but which is difficult to pin down, can be usefully informed by a consideration of the laws of thermodynamics. After providing an account of the two laws of thermodynamics, we suggest that they can form the basis of matching 'energy source to task', thereby contributing to sustainable energy use. Further, provided an expanded role for planning is allowed alongside the operation of markets, we argue that the laws of thermodynamics can assist in the transition to a significantly more sustainable economy rather than one predicated primarily on economic growth.