Essays on Peak Energy Is Most Fundamentally an Economic Issue Literature review

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The paper "Peak Energy Is Most Fundamentally an Economic Issue" is a perfect example of a macro & microeconomics literature review.   Peak energy refers to a peak in the rate of energy production. Specifically, this concept denotes a time when the global rate of extraction of energy resources reaches the maximum, after which a terminal decline in the rate of production follows (Mó rrí gan Tariel, 2010). The fact that non-renewable energy resources have formed the pillar of growth of economies means that a constraint in those resources will not just reduce the size of an economy but it is likely to break up.

In short, the existing growth of economies of nations as well as the world economy has evolved with particular dynamics and support from various inputs with energy resources playing the biggest part. As a result, we are locked up in hyper-complex economic processes that are increasing our vulnerability, but which we cannot be able to alter without adversely affecting the growth of our economies (Korowicz David, 2010). Consequently, we are likely to witness a decline or eventual collapse of our economies owing to the aforementioned problem. This paper suggests that peak energy is most fundamentally an economic issue.

To understand this better, it will be prudent to give a brief background of the “ peak energy” concept. In order to address this issue adequately, this paper highlights the impact of peak energy on the economies of nations. The concept of peak energy as applied to the rate of energy production is derived from the Hubbert Curve, which has been applied to the nation’ s domestic production rate in the past (McPherson Guy, 2010). The concept of Hubert Linearization is applied in predicting the amount of a non-renewable resource that is recoverable.

This model assumes that it is possible to describe the “ annual production trajectory of a non-renewable resource” logistically (McPherson Guy, 2010). According to this model, the annual production of a non-renewable resource is prone to grow at an increasing rate. But the production slows down at a certain point called the point of inflection.

References

Abelard, “how long do we have?” energy economics and fossil fuels, http://www.abelard.org/briefings/energy-economics.asp (accessed July 18, 2011)

Aleklett, K. and Campbell, C.J., “The Peak and Decline of World Oil and Gas Production”, Uppsala University, Sweden (not dated)

Engdahl F William, “ Iraq and the problem of Peak Oil”, current concerns, http://www.currentconcerns.ch/archive/2004/01/20040118.php, (accessed July 18, 2011)

Grubb Adam, “Peak Oil Primer” Energy Bulletin http://www.energybulletin.net/primer.php, (accessed July 18, 2011)

Jackson Davis, “bewildered by peak oil economics”, peak oil http://www.denverpost.com/headlines/ci_10738789 (accessed July 18, 2011)

Korowicz David, “Designing systems for a changing world” The Foundation for the Economics of Sustainabilityhttp://www.feasta.org/documents/risk_resilience/Tipping_Point.pdf (accessed July 18, 2011)

Li Minqi, “Peak energy and the Limits to China’s Economic Growth" Prospect of energy supply and Economic Growth from Now to 2050, http://www.peri.umass.edu/fileadmin/pdf/working_papers/working_papers_151-200/WP189.pdf , (accessed July 18, 2011)

McPherson Guy, “Energy Decline Heralds End of Economic Growth” Energy bulletin, http://www.suite101.com/content/energy-decline-heralds-end-of-economic-growth-a218422, (accessed July 18, 2011)

Michael Giberson, “More economists thinking about Peak Oil”, The energy Collective http://theenergycollective.com/michaelgiberson/47152/more-economists-thinking-about-peak-oil (accessed July 18, 2011)

Pearson Chris, information and analysis on the economics of solar and alternative energies”, Green econometrics, http://greenecon.net/category/energy_economics (accessed July 18, 2011)

Planck Foundation, 20th Century Weimar Warning”, Energy Economics, http://www.planck.org/downloads/Energy-Economics.pdf (accessed July 18, 2011)

Tariel, Mórrígan, “Peak energy, climate change, and the collapse of global civilization” The Current peak of oil crisis, Dec 2010 http://permaculture.com.au/online/articles/peak-energy-climate-change-and-the-collapse-of-global-civilisation-the-curent-peak-oil-crisis (accessed July 18, 2011)

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