A Biophysical Approach to Production Theory

TL;DR

This paper introduces a biophysical production theory that models economic activities based on physical laws, offering a more realistic alternative to traditional neoclassical models.

Contribution

It develops a novel analytical model of production grounded in biophysical principles, bridging physics and economics.

Findings

Provides a compact analytical model of biophysical production theory.

Suggests a more realistic understanding of economic phenomena.

Challenges traditional neoclassical production theories.

Abstract

Most people agree that human activities are consistent with physical laws. One may naturally think that sensible economic theories can be derived from physical laws and evolutionary principles. This is indeed the case. In this paper, we present a newly developed production theory of economics from biophysical principles. The theory is a compact analytical model that provides, in our view, a much more realistic understanding of economic (as well as social and biological) phenomena than the neoclassical theory of production.