“Exergy based analysis of economic sustainability”

Abstract

Exergy is presented here as the physical prime-mover of economic systems, and an exergy based concept of value is proposed in this paper. The main exergy fluxes are identified as those carried by raw exergy (primary sources), raw materials, usable exergy and exergy embodied in manufactured commodities. It is shown how efficiency of exergy use is the physical basis for competitiveness and how exergy content (value)can be assigned to skillfulness and expertise. Sustainability of economic systems is analyzed in the light of competitiveness and ability to take extra exergy taken from markets. It is also shown that in competitive economies the ratio (raw exergy)/(total value) tends to decrease, therefore indicating extra exergy from the markets, and this trend is illustrated with the case of the US economy. Finally, the average electricity price in the markets was proposed as a provisional correspondence between exergy content and price of commodities.