Home › Forums › Refining Community › Energy › UT – Declining Energy Quality Root Cause of Recession? › RE: UT – Declining Energy Quality Root Cause of Recession?
Here is interesting read from University Texas that claims Energy Return on Energy Investment (EROI) decline could be root behind Real estate bubble burst. His new method EIR done annually versus EROI every 5 years says when index drops below threshold (~5.5-5.9 ERI last two recessions compared to robust growth ERI of 8.0) the economy stops growing / declines.
If this is true then all this push to subsidized higher cost and less dependable “Green Energy” like Solar & Wind is definitely going to dig a deeper hole. When the market has a technology change that improves the efficiency of energy and lowers cost it is beneficial development but when a new / costly technology is subsidized and mandated to drive investment and use in the hopes it will spur efficiency evolution it just becomes a gamble that shouldnt be done in a struggling economy.
Additionally it points out how dangerous the Wall Street Mutal Fund speculation on Nat Gas/Crude/Energy which drives volatility and Energy cost so speculators can loot both the Stock Market and the Energy Industry without adding any benefit.