TITLE:
Getting Physical: Providing a Physical Basis for Economic Growth Analyses to Fill the Information Gaps in Contemporary Economics for Policy Development for a Sustainable Global Economy
AUTHORS:
Stephen J. Palmer
KEYWORDS:
Production, Sustainable Growth, Thermodynamic Systems Analysis, Climate Impact
JOURNAL NAME:
Theoretical Economics Letters,
Vol.15 No.5,
October
27,
2025
ABSTRACT: Prevailing economic theory is based on many hypotheses which have no physical science basis. The physical information missing from current practice currently undermines the successful development of policies for transitioning the global economy to a more resource efficient form that better sustains the natural capital its uses for future growth. This paper begins with a review of the state of the relevant art on economic behavior in physics and biology and how to transfer that knowledge to global economic models. The physical basis of economic growth arises from resource acquisition behaviour for growth in biology and this paper describes how that knowledge can be used to build a meaningful TPF and then TFP to describe growth. Without this information the risks to growth cannot be fully understood.