What is it about?
This paper develops a two-sector economic model in which useful exergy is introduced as an intermediate flow linking the energy sector and the rest of the economy. Useful exergy represents the energy services delivered to final users after conversion losses. Within this framework, the study derives an aggregate price for energy services and examines how changes in energy conversion and efficiency affect the cost of useful energy supplied to economic activities.
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Why is it important?
Economic analyses typically use primary or final energy, which do not represent the energy actually available to perform work. By treating useful exergy as the intermediate flow and deriving a corresponding aggregate price, the paper provides a framework that connects thermodynamic efficiency with economic costs. This allows the effects of energy conversion losses and efficiency improvements to be reflected directly in the price of energy services, improving the representation of energy–economy interactions.
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This page is a summary of: An aggregate price for energy services: Useful exergy as an intermediate flow in a two-sector model of the economy, Ecological Economics, October 2025, Elsevier,
DOI: 10.1016/j.ecolecon.2025.108665.
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