http://www.energybulletin.net/node/49332 An article on why current economic schools of thought may be deficient in analyzing commodities markets for oil, natural gas, and other energy sources.
"...What this implies, in turn, is that economics does not exist in a vacuum. The ground rules just mentioned took shape, after all, in an age where economic processes were dominated – one might even say “distorted” – by our species’ temporary access to extravagant supplies of cheap and highly concentrated fossil fuel energy. The new ground rules of economics that will take shape in the twilight of the age of cheap energy, in turn, will be shaped by the fact that energy is once again scarce, costly, and diffuse. More generally, it’s necessary once again to pay attention to the myriad ways that human economic systems are rooted in the wider processes of the natural world..."
Post title from an old joke about how economists does it take to change a light bulb?
12 years ago
