This paper is a contribution to the discussion on the relation between thermodynamics and economic theory. With respect to thermodynamic constraints on the economy, there are two diametrically opposite positions in this discussion. One claims that the constraints are insignificant (of no immediate practical importance for modelling) and in the intermediate run, do not limit economic activity and, therefore, need not be incorporated in the economic theory. The other holds that thermodynamics tells us that there are practical limits to materials recycling, which already puts bounds on the economy and, therefore, must be included in the economic models. Using the thermodynamic concept of entropy, we show here that there are fundamental problems with both positions. Even in the long run, entropy production associated with material dissipation need not be a limiting factor for economic development. Abundant energy resources from solar radiation may be used to recover dissipated elements. Wi ...more

Measure of disorder inthe state of any substance

In thermodynamics, entropy is a measure of certain aspects of energy in relation to absolute temperature. In thermodynamics, entropy is one of the three basic thermodynamic potentials: U (internal energy), S (entropy) and A (Helmholtz energy). Entropy is a measure of the uniformity of the distribution of energy.

The thermodynamic entropy S, often simply called the entropy in the context of thermodynamics, can provide a measure of the amount of energy in a physical system that cannot be used to do work. The term entropy was coined in 1865 by the German physicist Rudolf Clausius, from the Greek words en-, "in", and trope "a turning", in analogy with energy