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Monday, July 25 • 3:30pm - 4:00pm
The System of Accounts for Global Entropy Production, (Sage-P): Nonlinear Accounting of Gross Domestic Product (GDP) In the Domain of the Ecosphere, Sociosphere and Econosphere

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2763 GDP is a linear measure at market prices of the annual production of the (final) goods and services produced in the National Economy. It is gross insofar as it excludes the degradation of the capital stock. The accounts are divided into four categories: (i) P = production/income (i.e., payments for work and/or rent from property), (ii) C = consumption/expenditure (i.e., payments for goods and services), (iii) T = trade with the-rest-of-the-word, (i,e,, payments to/from nonresident consumers/producers), and (iv) K = capital/surplus, (i.e., investment with an expected flow of future income). We shall redefine the categories of GDP as product of the Second Law of thermodynamics: (i) Production = Pe = negentropy. (ii) Ce = consumption = entropy, (iii) Te = international trade in net-valued export/import of entropy production Te = (Pe - Ce), (iv) Ke = Low Entropy Fund (LEF) available for human consumption = Ke = Pe/Ce. The three states of LEF: (a) surplus-state = Pe/Ce > 1, (b) deficit-state = Pe/Ce < 1, and (c) steady-state = Pe/Ce = 1. We shall apply the System of Accounts for Global Entropy Production (SAGE-P) in order to construct Gross Domestic Entropy Production accounts, GDPe. The first step is to calculate to LEF for the Nation x. The second step is a correspondence mapping of LEF on the four categories of GDP. The third step is to introduce the valuation method unique to the domains: (A) Ecosphere, (i.e., values conserved-in-themselves, or intrinsic, (B) Sociosphere, (i.e., values conserved-in-use, or participation) and (C) Econosphere, (i.e., values conserved-in-exchange, or market prices. A, B and C are nested sets in the form: A [B,(C)]. The fourth step is a GDP correspondence mapping of the rate of change of entropy production ∂ Pe/Ce on the value-added to the economy of primary production, (i.e., natural renewable and non-renewable resources), secondary production, (i.e., manufactured goods) and tertiary production (services). The policy objective is to minimise the rate of entropy production per unit of consumption that is: (a) feasible, (b) socio-culturally acceptable and (c) maximise the per capita human welfare.

avatar for Mag. Stefan Blachfellner

Mag. Stefan Blachfellner

SIG Chair: Socio-Ecological Systems and Design, Bertalanffy Center for the Study of Systems Science


Monday July 25, 2016 3:30pm - 4:00pm MDT
ECCR 200