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The "Cost-Energy Equivalence Law"

Energy, the Source of All Costs

Dr. Heinz Schütte

The "Cost-Energy Equivalence Law" formulates the scientific definition of the connection between costs and energy consumption:

"Without exception, 100 % of all of the costs occurring in the world economic system result from the consumption of energy".

It was possible to derive this connection, which has been suspected for some time, from a physical law of nature. This proof is based exclusively on the statement of that physical law of nature without any additional assumptions or postulations, so that the Cost-Energy Equivalence Law itself satisfies the requirements of a law of nature. The derivation of the proof was published in the scientific journal "LIST FORUM für Wirtschafts- und Finanzpolitik", Vol. 38 (2012), No. 3-4, pp.138-146.

The Cost-Energy Equivalence Law formulates a completely new definition of the term "costs" in the field of global economics which bears significant consequences. More than 90 % of today’s global energy consumption and thus of the costs of the world economic system result from primary energy sources containing carbon such as coal, oil and gas, whose use releases an equivalent amount of carbon dioxide. Because correctly calculated energy costs from "renewable energy" are significantly higher than comparable costs in a classic coal-fired power plant due to the low availability and unpredictable nature of wind and sunshine, one comes to the astounding finding that "renewable energy" causes significantly greater consumption of natural energy resources than coal-fired power plants.

This is exactly the opposite of what politicians are promising citizens with the "energy transition". The original paper from "LIST FORUM" and the English-language version of the paper are available in PDF format.

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