Published by Swany on 17 Sep 2010
EROI, insidious feedbacks, and the end of economic growth
The Oil Drum: “Numerous theories attempting to explain business cycles have been posited over the past century… they all share one implicit assumption: a return to a growing economy, i.e. growing GDP, is in fact possible.… But if you believe as I do that the world is entering a unique period defined by flattening and then declining oil supplies, then for the first time in history we may be asked to grow the economy while simultaneously decreasing oil consumption, something that has yet to occur in the U.S. In this post I attempt to answer the following question: Is a return to long term economic growth possible? … Since long term economic growth requires an increasing supply of cheap energy… long term economic growth is unlikely.”