The energy cost of goods and services

Bullard, Clark W.; Herendeen, Robert A.

doi:10.1016/0301-4215(75)90035-x

Cited by 436 publications

(162 citation statements)

References 5 publications

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“…For example, the integral of net power ratio (NPR) equals NER. For summaries of net energy analysis approaches and conceptual constructs, I direct the reader to the literature (Murphy et al 2011;King 2014;Brandt et al 2013;King et al 2015a;Bullard and Herendeen 1975;Mulder and Hagens 2008;Modahl et al 2013).…”

Section: Energy and Net Energymentioning

confidence: 99%

Information Theory to Assess Relations Between Energy and Structure of the U.S. Economy Over Time

King

2016

Biophys Econ Resour Qual

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This paper describes the changing structure of the United States' (U.S.) domestic economy by applying information theory-based metrics to the U.S. input-output (I-O) tables from 1947 to 2012. Here the I-O tables are an economic network where the sectors are the nodes. The value of these metrics is that they describe the balance or trade-off between efficiency and redundancy of network flows as well as equality and hierarchy of flows through nodes in a network. I relate these metrics to the U.S. gross power consumption and annual intermediate spending by the food and energy sectors, the latter being a proxy for the inverse of the net power ratio (or net energy) of the economy, to test hypotheses of energy-economy structural linkages. The results of this paper show that increasing gross power consumption, as well as a decreasing share of intermediate expenditures of the food and energy sectors, correlates with increased distribution of money among economic sectors, and vice versa. The information theory metrics indicate two time periods at which major structural shifts occurred. The first was between 1967 and 1972, and the second was around the turn of the twenty-first century when food and energy expenditures no longer continued to decrease after 2002. In response to the latter, it is clear that the U.S. economy did trade off structural reserves (e.g., decreasing metrics of conditional entropy, redundancy, and equality) for structural efficiency (e.g., increasing metrics of efficiency, mutual constraint, and hierarchy) after food and energy expenditures increased post-2002. I also test the structural trends with increasingly simpler (e.g., fewer sectors) representations of the I-O tables, and the results are more consistent for I-O representations that account for inputs and outputs (e.g., value added and gross domestic product) rather than only the intermediate transactions among sectors. The findings of this paper have important implications for economic modeling in at least two ways. First, the paper helps explain how fundamental shifts in resources costs relate to economic structure and economic growth. Second, the paper shows that the number of sectors used to represent economic transactions influences the systemic metrics themselves.

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Section: Energy and Net Energymentioning

confidence: 99%

Information Theory to Assess Relations Between Energy and Structure of the U.S. Economy Over Time

King

2016

Biophys Econ Resour Qual

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“…IO tables are based on monetary transactions but can be extended to track energy use, in different forms, through all sectors from production to final consumption. The IO method has been applied to embodied energy accounting numerous times over the past decades, without major changes in methodology, so we refer the reader to the literature (Bullard and Herendeen, 1975a;Bullard and Herendeen, 1975b;Cohen et al, 2005;Herendeen et al, 1981;Herendeen and Tanaka, 1976;Lenzen, 1998a;Lenzen et al, 2004;Lenzen et al, 2006). Like its predecessors, this study draws from a national household survey at a suburban geographical resolution.…”

Section: Input Output Analysis Of Energy Use In Melbournementioning

confidence: 99%

Comparison of household consumption and regional production approaches to assess urban energy use and implications for policy

et al. 2011

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together to compare selected outputs for consistency, to identify complementarities and discuss the insight each approach brings to assessing and understanding urban 2 energy. Melbourne is an established and relatively affluent city with a significant manufacturing and heavy industry sector. The IO method captures the direct and embodied energy requirements of local household expenditure while the regional assessment more directly accounts for local production activity. IO analysis of the geography of Melbourne"s "energy catchment" and sectoral detail on energy consumption demonstrates the difference between the primary energy required by Melbourne"s economic structure and that ultimately required through the full supply chain relating to household expenditure. We suggest that the IO and regional approaches have particular relevance to policies aimed at consumption behaviour and economic (re)structuring, respectively. The complementarity of both methods further suggests that simultaneous analyses would be valuable in understanding urban energy futures and economic transitions.

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“…An LCA which is designed for arbitrary demands and with consistent feedbacks is more related to IOA in mixed units; both physical and monetary units. Many IO studies have used mixed units, particularly when studying indirect effects of energy consumption (Bullard and Herendeen, 1975).…”

Section: General Hybrid Lca Modelsmentioning

confidence: 99%

A comment on “Functions, commodities and environmental impacts in an ecological–economic model”

Peters

Hertwich

2006

Ecological Economics

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In a recent paper in this journal, Suh (2004) presented a model combining life cycle assessment (LCA) with input-output analysis (IOA); termed "integrated hybrid LCA". In this paper, we discuss various issues relating to the theoretical and practical use of the integrated hybrid LCA approach. In particular, the interpretation of the downstream feedback term, C d , is discussed from both a theoretical perspective and a practical implementation perspective. In this paper, two interpretations of C d are suggested depending on the particular LCA database used. If the LCA database is designed for a demand on the functional unit only, then it is argued that the C d term is negligible in most applications. If the LCA database is compatible with an arbitrary demand, then it is argued that in most cases the consistent use of the C d term implies excessive data requirements that are not justified by the potential gains. We then discuss further issues relating to the integrated hybrid LCA model and combining LCA and IOA in general.

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The energy cost of goods and services

Cited by 436 publications

References 5 publications

Information Theory to Assess Relations Between Energy and Structure of the U.S. Economy Over Time

Information Theory to Assess Relations Between Energy and Structure of the U.S. Economy Over Time

Comparison of household consumption and regional production approaches to assess urban energy use and implications for policy

A comment on “Functions, commodities and environmental impacts in an ecological–economic model”

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