Abstract

Biophysical economics is characterized by a wide range of analysts from diverse fields who use basic ecological and thermodynamic principles to analyze the economic process. The history of biophysical thought is traced from the 18th-century Physiocrats to current empirical research, with emphasis on those individuals who contributed to the development of biophysical economic theory. Attention is also given to a critique of the neoclassical theory of natural resources from a biophysical perspective, and how recent empirical biophysical research highlights areas of neoclassical theory which could be improved by a more realistic and systematic treatment of natural resources.

Key Words: Biophysical economics, ecological economics, sustainable development, entropy, thermodynamics, natural resources

Key Names: Nicholas Georgescu-Roegen, Robert Ayres, Herman Daly, Robert Costanza, Bruce Hannon, Fred Cottrell, Frederick Soddy, Cutler Cleveland, Earl Cook, Juan Martinez-Alier