Economic models don’t give enough weight to energy
Handelsblatt
Many economic models are based on the assumption that energy only contributes about five percent to production outcomes and that it can be substituted with one of the other factors such as labour or capital, Norbert Häring writes in Handelsblatt. He quotes economist Dietmar Lindenberger from EWI Cologne, who says that models about future production should incorporate the physical reality that energy plays a central role that cannot be substituted.
Read the article in German here.
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