Register

Peak Oil is You


Donate Bitcoins ;-) or Paypal :-)


Page added on January 3, 2021

Bookmark and Share

Net Energy and ERoEI* in a Mark III Economy

Net Energy and ERoEI* in a Mark III Economy thumbnail

Structure

The Mark I economy had only one economic requirement, namely, that each person had to eat one potato per day or die. This was useful to show that one man’s wealth can mean another man’s or many men’s death. The Mark II economy had four or five economic sectors and was useful to demonstrate the use of E/GDP data to convert money to energy and many other aspects of monetary behavior. To illustrate the use of ERoEI* and net energy for much more typical communities than the Autonomous Alternative Energy District, it is convenient to devise a Mark III economy. In this exercise a simple example of arbitrary construction is contrived to illustrate how to compute ERoEI*, Net Energy accounting, and sustainability or not.

Our simple example with most parameters chosen for convenience has six economic sectors, nine syndicates, three forms of energy, and four products other than energy itself, which should be the basis of the monetary currency. With a little bit more trouble, I could have contrived an example wherein a vector currency could have been introduced. To start with, though, the Mark III currency is based upon eMergy.  As in standard business practice, the costing of each product is divided into three parts of unity, namely, materials, labor, and expenses, as in the fourth column of Table 2.  Expenses usually includes taxes and profits as well as many other items that do not fit well into the materials and labor categories.  Let’s call them µ, λ, and ϵ, such that µ + λ + ϵ = 1.0.

The economic sectors: agriculture, energy, manufacturing, transportation, commerce, and health care, have their normal meanings. Every worker belongs to a syndicate that owns the tools in common and pays each worker the same despite a wide range of skills among them. Of course, most workers are quick to vote for the most skillful among themselves for positions of greatest responsibility. Gone are the days when men had to take orders from people who could not do the jobs they managed – like the pointy-haired guy in Dilbert, the comic strip. There is no shortage of advantages for excellence of character and skillful work; but, greater wealth and political dominance are not among them. The syndicates that are available to specific jobs through various sectors in the Mark III economy are farm work, non-farm agricultural work, manufacturing, engineering, energy, transportation, commerce, doctors and nurses, healthcare non-medical.

For the sake of a simple example with some opportunity for variety, I have chosen arbitrarily: photovoltaic solar energy, hydroelectric power, and biofuels from algae for my candidates for renewable energy. If I should have positive net energy, the profits therefrom must be used to trade solar electricity for bio-diesel which is in short supply, and, in addition, (1) food, (2) saxophones, (3) medical equipment, and (4) robotics will be traded for (1) much needed bio-diesel, which wouldn’t be so needed if it weren’t for (2) motor vehicles such as ambulances, fire trucks, snow plows, and tow trucks, (3) chemicals, and (4) steel. Now, I have no idea what the correct proportions of material, labor, and expenses are for any of the products; therefore, for the purposes of this imaginary example, I have picked simple fractions that add to 1.0.

For example, if there is any positive net energy returned, I have chosen to spend 40% of the net emergy growing some potatoes, the standard quantity of which has an energy cost of 0.17 emergy units. The work of producing such potatoes of one emergy unit value is distributed among the six economic sectors (agric, energy, manu, trans, comm, health) respectively in parts of (0.2, 0.2, 0.4, 0.25, 0.3, 0.1) (resp.) emergy units which can be thought of as energy investment for the agricultural syndicate. The percent of human effort assigned to each sector can also be represented as a six-component vector (20%, 15%, 10%, 5%, 30%, 10%). For each enterprise, the program prepares a six-by-nine matrix with a row for the percent of each of the six sectors and nine columns for the time credited to each syndicate for the portion of the work done for that project. For example, the photovoltaic collective has the following matrix associated with it.  MU stands for emergy unit defined at  https://www.eroei.net/emergyunit.htm .  If this is Table 1, Table 3 will be an entire sheet of the workbook illustrating a proposed organizational scheme, that one of you will improve upon immediately.   The point is to show that multiple primary energy plants and multiple products are not a challenge for ERoEI*.  In this community, there are no free loaders or workers whose only achievement is to get a greater share of the production for themselves or their employers.

Computation

For each labor syndicate assigned a single column of the data matrix in Table 3, consider the sum of each sector’s fractional share of each project,  times the quantity of work per emergy unit,  measured in hours for each of the six sectors.  Multiply this six-term sum by the labor cost,  and record the result for each of the nine labor syndicates.  Add these together to find the portion of the energy-invested term that is ascribed to human labor as in the normal business model composed of materials, labor, and expenses.  Thus, the energy returned over energy invested ratio for PV solar satisfies the following equation according to the Wayburn methodology:

 

Symbol Description
ERoEI* for the nth product
the fraction for the nth product of the nominal emergy rating for the entire enterprise
the fraction of the complete slate of costs for the nth product that is accounted for by human effort
the rate of compensation for the jth syndicate
the fraction of the nth product produced by the ith sector
The time required by the ith sector of the nth product by the jth syndicate

 

 

 

 

 

 

 

 

 

 

Table 2 shows the results and some of the data for this imaginary sample calculation.  All three of the imaginary renewable energy candidates passed the strict test ERoEI* equal to or greater than 1.0.   The renewable energy candidates were set up to pass to continue the make-believe computation.  It is unlikely that solar or biodiesel would pass with today’s primitive technology – especially recycle technology that has never been tried.   Someday, though, we will have renewable energy that will sustain human civilization for centuries here on Earth.  I personally will oppose “the idea that humanity, having sufficiently corrupted the planet where it arose, must at all costs contrive to seed itself over a larger area: that the vast astronomical distances, which are God’s quarantine regulations, must somehow be overcome.” – C. S. Lewis, Perelandra.

Thus, in our sample problem, there is enough net energy to imagine by-products that can be used to trade for biodiesel, motor vehicles, chemicals, and steel.  We knew before we established the success of our experiment that we would be able to trade electricity for liquid fuel, which we required for our emergency vehicles.  Moreover, we were permitted to set the transformity of biodiesel to 0.5; therefore, we obtained 20 Gibbs availability units of biodiesel for 10 units (kilowatt-hours) of 110 VAC, 60 Hz, single-phase electric power delivered to the buyer’s meter.  Electricity carries very little entropy. Hence, emergy or Gibbs availability are nearly pure energy.

 

 

 

 

 

Table 3 (preliminary)

A F M E T C Engg    Docs HC
Food 0.4 1 1.5 0.6 1.25 0.6 0.85 0.25 1.5 0.6
0.2 Agriculture 0.2 0.8 0.6 0.3
0.15 Energy 0.8 0.1
0.1 Manu 0.3 0.7
0.15 Trans 1
0.3 Commerce 0.3 0.2 0.5
0.1 Health Care 0.5
Musical Instruments 0.2
0 Agriculture 0 0 0 0 0 0 0
0.1 Energy 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.4 Manu 0.3 0.1 0.1 0.3 0.05 0.05 0.05
0.1 Trans 0.1 0.1 0.3 0.3 0.05 0.05 0.05
0.3 Commerce 0.1 0.05 0.1 0.3 0.2 0.2 0.2
0.1 Health Care 0.05 0.15 0.2 0.3 0.2 0.05 0.05
Medical Equipment 0.3
0 Agriculture 0 0 0 0 0 0 0
0.15 Energy 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.2 Manu 0.3 0.1 0.1 0.3 0.05 0.05 0.05
0.1 Trans 0.1 0.1 0.3 0.3 0.05 0.05 0.05
0.3 Commerce 0.1 0.05 0.1 0.3 0.2 0.2 0.2
0.25 Health Care 0.05 0.15 0.2 0.3 0.2 0.05 0.05
Robotics 0.1
0 Agriculture 0 0 0 0 0 0 0
0.2 Energy 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.3 Manu 0.3 0.1 0.1 0.3 0.05 0.05 0.05
0.1 Trans 0.1 0.1 0.3 0.3 0.05 0.05 0.05
0.3 Commerce 0.1 0.05 0.1 0.3 0.2 0.2 0.2
0.1 Health Care 0.05 0.15 0.2 0.3 0.2 0.05 0.05
PV Solar 0.45
0 Agriculture 0 0 0 0 0 0 0
0.2 Energy 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.25 Manu 0.3 0.1 0.1 0.3 0.05 0.05 0.05
0.15 Trans 0.1 0.1 0.3 0.3 0.05 0.05 0.05
0.3 Commerce 0.1 0.05 0.1 0.3 0.2 0.2 0.2
0.1 Health Care 0.05 0.15 0.2 0.3 0.2 0.05 0.05
Hydro-electric 0.35
0 Agriculture 0 0 0 0 0 0 0
0.2 Energy 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.3 Manu 0.3 0.1 0.1 0.3 0.05 0.05 0.05
0.1 Trans 0.1 0.1 0.3 0.3 0.05 0.05 0.05
0.3 Commerce 0.1 0.05 0.1 0.3 0.2 0.2 0.2
0.1 Health Care 0.05 0.15 0.2 0.3 0.2 0.05 0.05
Biodiesel 0.2
0 Agriculture 0 0 0 0 0 0 0
0.2 Energy 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.25 Manu 0.3 0.1 0.1 0.3 0.05 0.05 0.05
0.15 Trans 0.1 0.1 0.3 0.3 0.05 0.05 0.05
0.3 Commerce 0.1 0.05 0.1 0.3 0.2 0.2 0.2
0.1 Health Care 0.05 0.15 0.2 0.3 0.2 0.05 0.05

 

 

Table 3

A P M E T C Engg Docs HC
Food 0.290 0.010 0.060 0.036 0.016 0.015 0.015 0.019 0.056 0.008 1.281
0.2 Agriculture 0.040 0.160 0.120 0.060 0.000 0.000 0.000 0.000 0.000
0.15 Energy 0.000 0.000 0.120 0.015 0.000 0.000 0.000 0.000 0.000
0.1 Manu 0.000 0.000 0.000 0.030 0.070 0.000 0.000 0.000 0.000
0.15 Trans 0.000 0.000 0.000 0.000 0.000 0.150 0.000 0.000 0.000
0.3 Commerce 0.000 0.000 0.000 0.000 0.000 0.090 0.060 0.150 0.000
0.1 Health Care 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.050
Saxes 0.145 0.000 0.000 0.027 0.014 0.031 0.019 0.023 0.041 0.014 1.473
0 Agriculture 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.1 Energy 0.000 0.000 0.015 0.015 0.025 0.030 0.005 0.005 0.005
0.4 Manu 0.000 0.000 0.120 0.040 0.040 0.120 0.040 0.020 0.020
0.1 Trans 0.000 0.000 0.010 0.010 0.030 0.030 0.010 0.005 0.005
0.3 Commerce 0.000 0.000 0.030 0.015 0.030 0.090 0.015 0.060 0.060
0.1 Health Care 0.000 0.000 0.005 0.015 0.020 0.030 0.005 0.020 0.005
Medical 0.217 0.000 0.000 0.020 0.016 0.036 0.019 0.041 0.036 0.014 1.376
0 Agriculture 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.15 Energy 0.000 0.000 0.023 0.023 0.038 0.045 0.008 0.008 0.008
0.2 Manu 0.000 0.000 0.060 0.020 0.020 0.060 0.010 0.010 0.010
0.1 Trans 0.000 0.000 0.010 0.010 0.030 0.030 0.005 0.005 0.005
0.3 Commerce 0.000 0.000 0.030 0.015 0.030 0.090 0.060 0.060 0.060
0.25 Health Care 0.000 0.000 0.013 0.038 0.050 0.075 0.050 0.013 0.013
Robotics 0.072 0.000 0.000 0.025 0.015 0.034 0.019 0.034 0.036 0.014 1.414
0 Agriculture 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.2 Energy 0.000 0.000 0.030 0.030 0.050 0.060 0.010 0.010 0.010
0.3 Manu 0.000 0.000 0.090 0.030 0.030 0.090 0.015 0.015 0.015
0.1 Trans 0.000 0.000 0.010 0.010 0.030 0.030 0.005 0.005 0.005
0.3 Commerce 0.000 0.000 0.030 0.015 0.030 0.090 0.060 0.060 0.060
0.1 Health Care 0.000 0.000 0.005 0.015 0.020 0.030 0.020 0.005 0.005
Solar 0.450 0.000 0.000 0.023 0.015 0.036 0.019 0.022 0.041 0.014 1.760
0 Agriculture 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.2 Energy 0.000 0.000 0.030 0.030 0.050 0.060 0.010 0.010 0.010
0.25 Manu 0.000 0.000 0.075 0.025 0.025 0.075 0.025 0.013 0.013
0.15 Trans 0.000 0.000 0.015 0.015 0.045 0.045 0.015 0.008 0.008
0.3 Commerce 0.000 0.000 0.030 0.015 0.030 0.090 0.015 0.060 0.060
0.1 Health Care 0.000 0.000 0.005 0.015 0.020 0.030 0.005 0.020 0.005
Hydro 0.350 0.000 0.000 0.025 0.015 0.034 0.019 0.034 0.036 0.014 1.697
0 Agriculture 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.2 Energy 0.000 0.000 0.030 0.030 0.050 0.060 0.010 0.010 0.010
0.3 Manu 0.000 0.000 0.090 0.030 0.030 0.090 0.015 0.015 0.015
0.1 Trans 0.000 0.000 0.010 0.010 0.030 0.030 0.005 0.005 0.005
0.3 Commerce 0.000 0.000 0.030 0.015 0.030 0.090 0.060 0.060 0.060
0.1 Health Care 0.000 0.000 0.005 0.015 0.020 0.030 0.020 0.005 0.005
Biofuel 0.200 0.000 0.000 0.023 0.015 0.036 0.019 0.034 0.036 0.014 1.691
0 Agriculture 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.2 Energy 0.000 0.000 0.030 0.030 0.050 0.060 0.010 0.010 0.010
0.25 Manu 0.000 0.000 0.075 0.025 0.025 0.075 0.013 0.013 0.013
0.15 Trans 0.000 0.000 0.015 0.015 0.045 0.045 0.008 0.008 0.008
0.3 Commerce 0.000 0.000 0.030 0.015 0.030 0.090 0.060 0.060 0.060
0.1 Health Care 0.000 0.000 0.005 0.015 0.020 0.030 0.020 0.005 0.005
Combo 1.724
λ A OF M E T C Eng Med HC
0.3 Food 0.4 0.25 0.38 0.15 0.15 0.21 0.06 0.31 0.38 0.15
0.2 Agriculture 0.2 0.8 0.6 0.3
0.15 Energy 0.8 0.1
0.1 Manu 0.3 0.7
0.15 Trans 1
0.3 Commerce 0.3 0.2 0.5
0.1 Health Care 0.5
0.25 Saxes 0.2
0 Agriculture 0 0 0 0 0 0 0
0.1 Energy 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.4 Manu 0.3 0.1 0.1 0.3 0.1 0.05 0.05
0.1 Trans 0.1 0.1 0.3 0.3 0.1 0.05 0.05
0.3 Commerce 0.1 0.05 0.1 0.3 0.05 0.2 0.2
0.1 Health Care 0.05 0.15 0.2 0.3 0.05 0.2 0.05
0.25 Medical 0.3
0 Agriculture 0 0 0 0 0 0 0
0.15 Energy 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.2 Manu 0.3 0.1 0.1 0.3 0.05 0.05 0.05
0.1 Trans 0.1 0.1 0.3 0.3 0.05 0.05 0.05
0.3 Commerce 0.1 0.05 0.1 0.3 0.2 0.2 0.2
0.25 Health Care 0.05 0.15 0.2 0.3 0.2 0.05 0.05
0.25 Robotics 0.1
0 Agriculture 0 0 0 0 0 0 0
0.2 Energy 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.3 Manu 0.3 0.1 0.1 0.3 0.05 0.05 0.05
0.1 Trans 0.1 0.1 0.3 0.3 0.05 0.05 0.05
0.3 Commerce 0.1 0.05 0.1 0.3 0.2 0.2 0.2
0.1 Health Care 0.05 0.15 0.2 0.3 0.2 0.05 0.05
0.3 Solar 0.45
0 Agriculture 0 0 0 0 0 0 0 0 0
0.2 Energy 0 0 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.25 Manu 0 0 0.3 0.1 0.1 0.3 0.1 0.05 0.05
0.15 Trans 0 0 0.1 0.1 0.3 0.3 0.1 0.05 0.05
0.3 Commerce 0 0 0.1 0.05 0.1 0.3 0.05 0.2 0.2
0.1 Health Care 0 0 0.05 0.15 0.2 0.3 0.05 0.2 0.05
0.3 Hydro 0.35
0 Agriculture 0 0 0 0 0 0 0 0 0
0.2 Energy 0 0 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.3 Manu 0 0 0.3 0.1 0.1 0.3 0.05 0.05 0.05
0.1 Trans 0 0 0.1 0.1 0.3 0.3 0.05 0.05 0.05
0.3 Commerce 0 0 0.1 0.05 0.1 0.3 0.2 0.2 0.2
0.1 Health Care 0 0 0.05 0.15 0.2 0.3 0.2 0.05 0.05
0.3 Biodiesel 0.2
0 Agriculture 0 0 0 0 0 0 0 0 0
0.2 Energy 0 0 0.15 0.15 0.25 0.3 0.05 0.05 0.05
0.25 Manu 0 0 0.3 0.1 0.1 0.3 0.05 0.05 0.05
0.15 Trans 0 0 0.1 0.1 0.3 0.3 0.05 0.05 0.05
0.3 Commerce 0 0 0.1 0.05 0.1 0.3 0.2 0.2 0.2
0.1 Health Care 0 0 0.05 0.15 0.2 0.3 0.2 0.05 0.05

 

Table 4
Syndicates
A Agriculture on the farm
P Workers classified as agricultural who do not work on farms
M Manufacturing both within factories and in the field
E Workers whose mission is to provide us with energy
T Those whose mission is to carry raw materials, people, and goods from place to place
C Those who serve commerce
Engg Engineering and the practical applications of science
Med Those who keep us healthy and cure us if we are sick
HC Those who serve the healthcare business except wellness and healing

 



7 Comments on "Net Energy and ERoEI* in a Mark III Economy"

  1. jimanglin on Mon, 4th Jan 2021 10:05 am 

    Such a load of fake-tech mumbo-jumbo. The sad truth is that the constant decline in net energy availability,which is already underway, will be a crushing blow for advanced civilizations.

  2. DT on Tue, 5th Jan 2021 1:16 am 

    Most people won’t get it, and or the disappearance of net energy will be erroneously blamed on some unseen boogie man just around the corner. So duck and cover “communism”, the war on drugs=the evil coming from south of the boarder, the war on terror=those crazy brown people from the middle east blowing up buildings, covid 19 watch out it’s from China. So the loss of net energy will be blamed on…..Physics, yea that’s it. We will be trained and led to believe that we need a war on physics to end this un-American loss of our net energy.

  3. Sissyfuss on Fri, 8th Jan 2021 3:13 pm 

    So math will overcome Limits to Growth. Brilliant.

  4. Sissyfuss on Fri, 8th Jan 2021 3:14 pm 

    So math will solve Limits to Growth. Brilliant.

  5. FamousDrScanlon on Fri, 8th Jan 2021 10:38 pm 

    DT – “Most people won’t get it, and or the disappearance of net energy will be erroneously blamed on some unseen boogie man just around the corner”

    Plandemic & Great Reset ARE their boogie man.

    Even if their retard grand conspiracies were true the reason ‘they’ needed to implement them is Overshoot….Limits To Growth…declining net energy.

    And Americans, especially whites, sucked up more energy & resources than any other Cancer monkeys. The US war machine alone uses more energy & resources than many countries.

    Boo fucking hoo – my heart’s bleeding over the obese dissipative’s declining lifestyle.

    Discount the US war machine numbers & Canadians have been/are just as rapacious in their energy use & consumption.

    I don’t have a problem with dissipatives being dissipatives – it’s what we do. Americans & Canadians did it BIGLY because we were able too. It’s the snivelling, blaming & victim-hood from a decline of our own doing that disgusts me. Most of these hysterical crisis cult conspiracy tards are not going to last. No resilience & psychologically fragile. Libtards are not the only Snowflakes.

  6. Theedrich on Sat, 9th Jan 2021 3:54 am 

    The moneyed woke elite scum now rule. Their dictatorship is due to the ingrained sloth, stupidity and suicidism of the American proletariat, as well as to the bottomless corruption of government bureaucracies and the media filth hypnotizing the masses.

    The $27T national debt is a Damocles sword hanging over the cancer-filled national organism, ready to plunge into its heart.  But the elites are unconcerned, expecting to seize global power through a capitalist-communist crime syndicate of their own making.  The populace is programmed by deranged academic armies that “re-educate” the naïve young and prepare the sheep for the slaughter.  Stalin and Mao Zedong have long since led the way.

    The traitorous Alheimzer’s patient now about to squat on the Yankee throne will take orders from the woke billionaires.  And the masses will be sucked bone dry.  The military-industrial complex will be paid in Monopoly money manufactured out of thin air.  Until the inevitable collapse.

    No one will believe it when death comes to Main Street.

    But no one will need to, because Chinese fentanyl will eliminate all of Yankeedom’s cares.

  7. FamousDrScanlon on Sat, 9th Jan 2021 7:37 pm 

    Theedrich, and of course all the righty oligarchs, elite, wealthy, politicians, bureaucrats & voters have played no part in American decline – innocent & pure as the driven snow. Tell yourself.

    Trump, GOP politicians, right-wing elites & bureaucrats just threw all the ‘patriots’ to the wolves.

    Used them like a crack whore.

    Trump & Co used y’all then abandoned you & they are all abandoning Trump & each other & you. All trying to cover their asses & will sacrifice anyone & everyone. That’s your precious non liberals & everyone can see it.

    You & your one sided tale of blame are a fucking joke.

    It’s an American thing. The waning days of a degenerate, toxic, pathological culture & people. It’s pretty much all of you, less maybe 5-10%(?).

    I agree with much (80%) of your take on American Progs, top to bottom, but they are only half the story.

    Btw, are you aware you sound like a woman? The bitching nagging kind.

    Theedrich is a Karen:(

Leave a Reply

Your email address will not be published. Required fields are marked *