Abstract
We translate between energetic and economic metrics that characterize the role of energy in the economy. Specifically, we estimate monetary expenditures for the primary energy and net external power ratio (NEPR direct ; NEPR, net external power ratio), a power return ratio of annual energy production divided by annual direct energy inputs within the energy industry. We estimate these on an annualized basis for forty-four countries from 1978 to 2010. Expressed as a fraction of gross domestic product (GDP), f e , GDP , the forty-four country aggregate (composing >90% world GDP) worldwide expenditures on energy decreased from a maximum of 10.3% in 1979 to a minimum of 3.0% in 1998 before increasing to a second peak of 8.1% in 2008. While the global f e , GDP fluctuates significantly, global NEPR direct declined from a value of 34 in 1980 to 17 in 1986 before staying in a range between 14 and 16 from 1991 to 2010. In comparing both of these metrics as ratios of power output over power input, one economic ( f e , GDP - 1 ) and one biophysical (NEPR direct ), we see that when the former divided by the latter is below unity, the world was in a low-growth or recessionary state.
Highlights
This manuscript is Part 2 of 3 papers comparing net energy and economic metrics
We provide a global dataset for expenditures on energy and net energy metrics using data from the International Energy Agency (IEA)
The estimated fe,gross domestic product (GDP) decreased from a maximum of 10.3% in 1979 to 3.0% in 1998 before increasing to 8.1% in 2008
Summary
This manuscript is Part 2 of 3 papers comparing net energy and economic metrics. Part 1 includes a fuller background and motivation before analyzing how net energy and power metrics translate to individual energy commodity (and technology) costs and prices, respectively [1]. Part 2 analyzes how net energy metrics relate to expenditures on energy. The prices and energy cost share are important metrics. To an ecologist and biophysical systems modeler, the energy return ratio (ERR) is an important metric for models and perspectives not purely based on monetary flows. ERRs are ratios of the energy delivered (or extracted) from an energy system divided by the energy invested to deliver that output
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