Energy accounting

In economics, energy accounting is a theory which holds that the “value” of any good or service should be determined by the amount of “energy” that goes into making it. [1] The energy accounting model can be contrasted with the “labor theory of value” (Marx, c.1885) of the theory that “value should be determined by prices” (Simon, 1991). [1]

Overview
In 1881, Sergei Podolinsky, in some article, supposedly, according to Juan Alier (1979), strove to reconcile the work-based theory of value with some type of proto "energy accounting" theory by integrating economic cycles with natural cycles, amid the skepticism of German political theorist Friedrich Engels who deemed it “totally impossible to try to express economic relationships in physical terms.” [2]

In the late 20th century, economists, such as Nicholas Roegen and Herman Daly, the thinkers behind the “Roegen-Daly school” of economics, energy economics, ecological economics, and or biophysical economics, among other contrived namesakes, concerned about the loss of natural resources actuated by economies, sought to attempt to use loosely conceived ideas about energy and entropy, e.g. Roegen's "material entropy" theory, to formulate moral imperative based models to save natural resources, and began to lobby politically to get these models implemented into national energy policy guidelines and regulations, or something along these lines.

References
1. Simon, Julian. (1991). “Entropy and Energy Accounting: are They Relevant Concepts?” (Ѻ), Entropy, Jan 15.
2. Alier, Juan M. and Naredo, Jose M. (1979). “La Nocion de Frerzas productivas y la Cuestion de la Energy.” Cuadernos de Ruedo Iberico (pgs. 71-90.). No. 63-66, May-Dec.

Further reading
● Simon, Julian. (1981). “Energy Accounting” (Ѻ), Afternote 2 to §12: Today’s Energy Issues, of The Ultimate Resource 2. Princeton, JulianSimon.com, 1994.

External links
Energy accounting – Wikipedia.

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