"I don't think these assumptions will ever let you create a theory that genuinely "ties physics and economics together at the fundamental level", with anywhere close to the precision and reliability of true physical laws..."
Do you know of any true physical laws that connect physics and economics?
@Erin @Jackson Wagner @ChristianKleineidam @Arturo Macias
All of this being said, do you think that more often than not that the assumptions would hold?
Regarding use in practice--in a database accessible from one source linked to the product via the label, or on the product page.
Something like:
Product A
Production Cycle:
T34, E45, M23, S15
Externality Watchlist:
CO2 = 300kg
P = 150kg
Utility
T3, E22, M4, S4
EOL Cycle:
T15, E25, M35, S10
Alerts:
Company B of product production line implicated in Ohio train wreck with (TEMS) externality outputs.
///
Then maybe you could click on the individual letter-number pairs to get more info on the underlying values. Something along those lines.
There are few ideas I think I would really like to explore:
One is the detailed production representation becoming available to the public with a statutory requirement for all companies of a certain size (public and private) to quantify their TEMS inputs and outputs, similar to the way public companies are required to publish financial reports to the SEC. It would include info such as raw materials purchased, labor hours, and outputs including externalities. That would make the analysis part, much more doable, right? Because you wouldn't have single e...
One of the core ideas is to quantify these externalities for ease of analysis. Many of these things would be quantified as TEMS values.
For example, bottles in the ocean is an M value in the EOL cycle.
Health effects would be T utility of the body in QALYs.
Many of things are already quantified as TEMS values in the existing economic environment, its just that the relationship between physics and economics, or physics and human behavior, is not officially recognized in the pedagogy. That is what I'm trying to address.
Regarding the second question, precisely because the social cost is prone to dollar value distortions.
Regarding steel, I think there is also some additional utility that you are leaving out. One would be that it is more flexible, whereas aluminum is prone to breaking or snapping when under a lot of force. I imagine that would be important as automobiles are much more prone to accidents and the flexibility adds an additional layer of safety for the driver. In general, I think that heavy industries are much less prone to subjective utilities than individuals.
As you stated, calculating TEMS values for things like human capital and subjective utilities d...
I'm not sure I'm catching your meaning, but if you're talking about people making decisions regarding personal TEMS expenditure, then yes, I think many of the biases would still be present.
But here's an example of what I'm thinking:
We want a reliable quantification of the underlying TEMS costs of production and processing, that way economic decisions, such as investing in plastics can be compared to their TEMS utility at the consumer level.
For example, how much TEMS is this plastic bottle saving the consumer and how many people are using it wou...
Sure, I'd say the main difference is that traditional economic theory has no official connection to physics. It is based primarily on monetary prices and those may or may not reflect underlying physical conditions. Monetary prices are subject to distortions such as various biases of perception, power, etc whereas TEMS values are hard-coded into the underlying framework of reality.
Please let me know if that doesn't answer your question.
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This is a very helpful post, thank you. I especially appreciate the names and the resources.
I think where I would disagree is that price is a sufficient statistic, especially for externalities.
Your assessment would be that those need to be taxed into price?