TITLE:
On the Energy Theory of Value: Economy and Policies
AUTHORS:
Peter Stallinga
KEYWORDS:
Labor Theory of Value (LTV), Physics, Politics, Energy Theory of Value (ETV)
JOURNAL NAME:
Modern Economy,
Vol.11 No.5,
May
28,
2020
ABSTRACT: The Energy Theory of Value is presented on basis of
clearly defined physical principles of energy and entropy. It is put in three
postulates: economy is energy consumption, the universe (and thus economy)
needs to increase its entropy, and in a free market every trade leaves people
happier (defined in physical objectives). For the energy equivalence, we find a current energy value of 170 mW economy per (2019) US$/year. Three basic
questions are asked and answered: Is unfettered capitalism possible? Can we manage
a steady-state economy in a free market? Do the energy transition policies make
sense? It is found that if energy consumption is reduced, it will push many
people into abject poverty.