Sustainability, Entropy and Thermoeconomics

Mainstream economics exposes itself frequently as a futile enterprise: The emperor has no clothes.

One of the important evolutions our future holds in store for us is a transition from the antiquated and useless neoclassical synthesis of mainstream economics to something called thermoeconomics.

Thermoeconomics is a currently non-orthodox school of economic thought based on the thermodynamics of matter, energy, entropy and information. By contrast, mainstream economics is based on measuring the supply of fiat money, objectivist theories of value and market-clearing equilibrium prices — angels dancing on the head of a pin.

Sustainability is about entropy: A system that permits the increase of entropy over time without correction is not sustainable, by definition. So the goal of sustainability will drive out mainstream economics and usher in a new orthodoxy.

Thermoeconomics cares about entropy and sustainabiilty; mainstream economics does not.

Further Reading

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