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The economy is a complex system, the only way to be sure that when you change something somewhere the energy consumption will remain constant is to put a constr
by kgwgk 7y ago
The economy is a complex system, the only way to be sure that when you change something somewhere the energy consumption will remain constant is to put a constraint on it. You could set quotas, increase/decrese taxes to drive it to the desired targets, etc.
Imagine the system is at equilibrium at a certain output and energy usage and you discover a device than increases efficiency in the use of energy by 10%. The system could produce the same output as before using 10% less energy. But the new equilibrium won't be the same output at 10% less energy consumption, because some resources will be freed in the energy generation sector and the price of energy will go down resulting in some activities that were not economically viable before becoming viable. Maybe desalting sea water was too expensive before, but with lower energy prices and higher efficiency it does make sense, for example. You will have an increase in output but whether the new energy consumption is below or above the original level depends on the details. The latter is more likely, I guess.
- dosy 7y agoThank you for explaining / taking me through that. I totally agree that it's in the details. My factory now makes the same amount of sneakers but uses less energy, and I have more profit which I can spend on more things, maybe making new markets viable. And in the macro picture, that extra energy, lower prices, makes some things become viable. And what happens from there regarding energy depends on the details. Very interesting and good, semi-detailed discussion.