Graham Palmer, a regular BNC community member, has published a new book. It is titled “Energy in Australia: Peak Oil, Solar Power, and Asia’s Economic Growth” and is published by Springer (in their “Springer Briefs in Energy” series). It’s a slim, taughtly written volume (91 pages) that can be read in 1 or 2 sittings. If you have a Kindle, you can purchase it on Amazon.com.au.
I enjoyed the book and got a lot out of it — a combination of useful facts/figures and practical, hard-nosed analysis. I won’t go on too much about the details of the content in this post, because I’ve asked John Morgan to do a full review of its contents for BNC, which he will write up shortly. So stay tuned.
But meanwhile, here is a short precis from the author (Graham), written for this website:
Since the cost of energy represents a relatively small proportion of GDP, the standard neoclassical economic theory of economic growth assumes that it is not a significant factor of production. Therefore improvements in the productivity of energy systems are assumed to make only a minor contribution to economic growth – global primary energy consumption is assumed to rise with global GDP subject to improvements in the energy intensity of production, and price and income elasticities. Indeed, the IEA, EIA and IMF energy forecasting models are computed from GDP growth forecasts – energy supply is assumed to be unconstrained (see Ayres and Voudouris 2013).
The alternative ecological economics perspective is that the increase in energy flows, since the industrial revolution, has been integral to economic development, and that the low cost of energy is a reflection of the ready availability of energy dense fossil fuels. Rather than GDP driving energy consumption, high-EROI energy has enabled GDP growth (see Ayres and Voudouris 2013, Sorrell 2010, Alcott 2012). The very high energy return on investment (EROI) from fossil fuels has enabled the development of the modern state, with advanced education, healthcare, welfare, and the richness and diversity of modern society.