Second Law of Economics

From the reviews: "The second law of economics by Reiner Kummel is divided into five chapters. Lots of mathematical expressions, derivations, and interpretations are given which are useful for scientists in this area. This is an interesting book written by a physicist with an interdisciplinary approach suited to the scientific minded as well as non-specialist audience. The author nicely incorporates energy, entropy, and technological concepts into the models of economic development." (P. N. Rathie, Mathematical Reviews, December, 2013) "It is no easy task to write a book that is targeted at a broad audience and merges essential concepts of thermodynamics, statistical physics, and economics. However, theoretical physicist Reiner Kummel succeeds in doing just that with The Second Law of Economics: Energy, Entropy, and the Origins of Wealth. The book discusses the impact of two fundamental laws of nature-energy conservation and entropy production-on the creation and growth of wealth...[The author] argues in a clear and simple way that energy conversion is an essential force in wealth creation and a force to be reckoned with in the crafting of economic policy... "Overall, The Second Law of Economics is accessible and quite enjoyable, in part because of the subtle ironic tone Kummel uses in some places. He points out that, for an interdisciplinary field like economic thermodynamics, even PhD scientists can make naive observations...Besides physicists and economists, researchers and policymakers concerned with resource conservation and how a society should be economically organized in the future can benefit from The Second Law of Economics. After all, understanding that law now can help us guarantee the prosperity of future generations." --Physics Today, December 2011

• Chapter 1: PROLOGUE: Time Travel with Abel From Big Bang to Sun Light on Earth As Life Goes Fire and Grain Ancient Empires Wind Power, Gunpowder and Wood Industrial Revolution Golden Age Outlook References Chapter 2: ENERGY 2.1 Understanding the Prime Mover 2.1.1 How the Energy Concept Evolved 2.1.2 Energy for All and Forever 2.1.3 Energy Quantity and Quality 2.2 Sun and Earth 2.2.1 Energy Production in the Sun 2.2.2 The Natural Greenhouse Effect 2.2.3 Solar Activity and Climate 2.2.4 Photosynthesis, Respiration and Food Production 2.3 Amplifiers of Muscles and Brain 2.3.1 Heat Engines 2.3.2 Transistors 2.4 Energy Services 2.4.1 Freedom from Toil 2.4.2 Comfort, Mobility, Information 2.4.3 Political Power 2.5 Consumption - and What is Left 2.5.1 Consumption of Energy Carriers 2.5.2 Reserves and Resources of Fossil and Nuclear Fuels 2.5.3 Renewable Energies 2.5.4 Energy Conservation 2.6 Technological Perspectives 2.6.1 Fission 2.6.2 Fusion 2.6.3 Solar Power from Deserts and Space 2.7 Appendix A: Basic Forms of Energy 2.7.1 System Energies 2.7.2 Work and Heat 2.7.3 Enthalpy and Exergy 2.7.4 Thermodynamic Potentials 2.8 Appendix B: Energy Units References Chapter 3: ENTROPY 3.1 No Free Lunch 3.2 Equipartition, the Toddler and Entropy 3.3 States of Systems 3.4 The Way Things Change 3.4.1 Driving Towards Disorder 3.4.2 Haste Makes Waste: Irreversible Processes 3.5 Arrow of Time 3.6 Entropy Production and Emissions 3.6.1 Sources and Substances 3.6.2 Anthropogenic Greenhouse Effect 3.6.3 Pollution Control and Heat Equivalents of NOX, SO2, CO2, and Nuclear Waste3.7 Appendix:Non-equilibrium Thermodynamics and Second Law 3.7.1 Gibbs' Fundamental Equation 3.7.2 Balance Equations 3.7.3 Density of Entropy Production References Chapter 4: ECONOMY 4.1 Complementary Perspectives on the Economy 4.2 Energy, Entropy and the Growth Paradigm 4.3 Pre-Analytic Vision: The Law of Diminishing Returns 4.4 How Technological Constraints Change Economic Equilibrium 4.4.1 Output Elasticities 4.4.2 Shadow Prices 4.4.3 Appendix 1: Maximizing Profit 4.4.4 Appendix 2: Maximizing Overall Welfare 4.5 The Second Law of Economics 4.5.1 Levels of Wealth Creation 4.5.2 The Technological Constraints on Capital, Labor and Energy 4.5.3 Modeling Production 4.5.4 Economic Growth in German, Japan, and the USA 4.5.5 The Productive Powers of Capital, Labor, Energy, and Creativity 4.5.6 Cointegration 4.5.7 The "Useful Work" Approach 4.5.8 Pollution, Recycling and Perspectives on Growth 4.5.9 Appendix 3: Aggregating Output and Factors in Physical Terms4.5.10 Appendix 4: Explicit Constraint Equations 4.5.11 Appendix 5: Empirical Data of Output and Inputs 4.5.12 Appendix 6: Determining Technology Parameters 4.6 Distribution of Wealth 4.6.1 Adam Smith's Concepts and Karl Marx' Error 4.6.2 Rich and Poor 4.6.3 Taxes and Debts 4.6.4 Discounting the Future 4.7 Summary and Discussion References Chapter 5: EPILOGUE: Decisions under Uncertainty Ethics Reason References GLOSSARY INDEX