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Archive: Doughnut Economics, with Kate Raworth

Intelligence Squared

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The Overlooked Role of Energy in Economic Systems

Bill Phillips created one of the first computer models of the economy using pipes filled with water to represent debt and income flow. However, the model lacked the representation of energy input required to make it function. This absence highlights the oversight in economics regarding the essential role of energy in economic production systems. While labor and capital are discussed, energy's significance as a constraining or enabling factor in production is generally disregarded.

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