Economics for Rebels

An electrifying guide to the ecological economics of energy - Paul Brockway

Feb 14, 2023
In this engaging discussion, Paul Brockway, an academic researcher from the University of Leeds, delves into the intricacies of ecological economics and energy systems. He unpacks why conventional decarbonisation models may lead us astray and highlights the significant role of energy efficiency in economic growth. Paul introduces the concept of exergy, emphasizing its critical importance for understanding energy dynamics. His insights on recycling and circular economies challenge prevalent assumptions about energy consumption, urging a deeper evaluation of our sustainable practices.
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INSIGHT

Models Understate Rebound And Overstate Efficiency

  • Mainstream climate models assume large future drops in energy demand that conflict with historical energy–GDP relationships.
  • Brockway finds large economy-wide rebound and missing energy–economy links, so models likely overstate efficiency gains.
ADVICE

Use Policy To Lock In Efficiency Gains

  • Use policy levers like carbon taxes to capture efficiency savings before rebound re-spends them into the economy.
  • Consider planned post-growth or degrowth strategies if rebound fully offsets efficiency gains.
INSIGHT

A Missing Middle Between Energy And Economics

  • Mainstream economic models separate rich technology detail from weak economic links to energy, and vice versa for energy models.
  • Exergy-economics sits in the middle to reveal stronger energy–growth coupling missing in both camps.
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