Energy and the biophysical view of economic activity: from joules to fuels

The view of humanity’s energy supply and use presented last week painted a picture in the most abstract terms. The aggregate figures discussed there can be viewed as an attempt to describe all significant economic activity by means of a single quantitative measure. Such efforts may well have a familiar tone—in a sense, the data that the IEA provides in energy terms is a physical-world analogue to the financial-world perspective provided by bodies such as the Organisation for Economic Co-operation and Development (OECD)—the IEA’s parent inter-governmental body—when it measures global economic activity in terms of Gross Domestic Product, or GDP. In this sense, we could view the 510 EJ total primary energy supply (TPES), and 350 EJ total final consumption (TFC) in 2009 as the energetic equivalent of saying that in 2009, global aggregate GDP was around US$60 trillion. Continue reading