MdM SEMINAR SERIES- "The Role of Energy in the Industrial Revolution and Modern Economic Growth" by David I. Stern

Title: "The Role of Energy in the Industrial Revolution and Modern Economic Growth"

Speaker: David I. Stern, Crawford School of Public Policy, The Australian National University

Date: Tuesday, December 5^th 2017

Time: 11.00 h

Venue: Room Z/22- Z/023

Abstract

Ecological and mainstream economists have debated the importance of energy in economic growth. Ecological economists usually argue that energy plays a central role in growth, while mainstream economists usually downplay the importance of energy. Using the (mainstream) theory of directed technological change, I show how increasing scarcity of biomass could induce coal-using innovation in Britain, resulting in the acceleration in the rate of economic growth known as the Industrial Revolution. Paradoxically, industrialization would be delayed in countries with more abundant biomass resources. However, as energy has become increasingly abundant, the growth effect of additional energy use has declined. Furthermore, both directed technological change theory and empirical evidence show that innovation has increasingly focused on improving the productivity of labor rather than that of energy. This explains the focus of mainstream economic growth models on labor productivity enhancing innovation as the driver of economic growth. 

Bio

David Stern is a professor in the Crawford School of Public Policy at the Australian National University. He is an energy and environmental economist, whose research focuses on the role of energy in growth and development and consequent environmental impacts, in particular, climate change.