Blair Fix

Energy and institution size

Why do institutions grow? Despite nearly a century of scientific effort, there remains little consensus on this topic. This paper offers a new approach that focuses on energy consumption. A systematic relation exists between institution size and energy consumption per capita: as energy consumption increases, institutions become larger. I hypothesize that this relation results from the interplay between technological scale and human biological limitations. I also show how a simple stochastic model can be used to link energy consumption with firm dynamics.

Toward a Biophysical Growth Theory

Having conducted an extensive investigation into the empirical realities of growth (in previous chapters), the conclusion is reached that it is time to abandon neoclassical growth theory. This chapter reviews the basic problems with neoclassical theory before outlining some of the essential elements of a biophysical growth theory. The empirical results from previous chapters are used to propose a list of seven ‘stylized’ biophysical facts that a biophysical growth theory must explain. The basic strengths of a biophysical growth theory are discussed and arguments are made for why it is a timely endeavor.