Gaël Giraud, Georgetown University, USA

It is easy to state that is important to incorporate the physical laws (e.g., thermodynamics) into economic growth models, but in practice there are many ways to construct such a model. One does not need to add many states to a model before it becomes difficult to relate to another model.  What assumptions should be made, or are most important, for relating economic and physical variables?  If we are to relate social outcomes (e.g., wages and inequality via wage distribution) to the physical nature of the economy, how do we simultaneously maintain the conservation of flows of mass, energy, and money.  What are some options for creating a theory of economic growth that is grounded in physical principles?

In this session we’ll hear from three researchers who have been working to answer one or more of these questions via their research. They will summarize their work in terms of what they believe are the main takeaways, the important governing principles they have considered, and what they see as important next steps in their own research efforts as well as the broader community of biophysical and ecological economic growth modelers.

This session includes three presentations plus time for discussion among the presenters and the audience.

Keywords: thermodynamics, energy, growth, stock and flow consistent