# System of Accounts for Global Entropy Production

**= Project SAGE-P is a Special Interest Group (SIG) of the International Society for Systems Science (ISSS)**

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# Description

"The Project SAGE-P (i.e., System of Accounts for Global Entropy Production) is a revolutionary methods to account for emergent properties of complex systems. The metric is the Second Law of thermodynamics or the rate of entropy production per unit of consumption, or its inverse, rate of entropy efficiency per unit of production. The accounting matrix describes the inflow = production, and the outflow = consumption, in any well-defined, Low Entropy Fund, (LEF). The balance sheet of the LEF is (a) surplus-state, (i.e., sustainable + growth ), (b) equilibrium-state, (sustainable + zero-growth), (c) deficit-state, (unsustainable + degrowth). The Project is a Special Interest Group (SIG) of the International Society for Systems Science (ISSS) and open to interested researchers." (https://www.researchgate.net/profile/Anthony_Friend?)

# More information

*** Article/chapter: System of Accounts for Global Entropy-Production (SAGE-P): The Accounting in the Topological Domain Space (TDS) of the Econosphere, Sociosphere, and the Ecosphere, September 2017; DOI: 10.1007/978-3-319-38919-6_6; In book: Green Economy Reader**

"This chapter describes the accounts of the Econosphere, Sociosphere and Ecosphere governed by the Second Law of thermodynamics. Applied symmetries of ?production? (i.e., neg-entropy), ?consumption? (i.e., entropy) and capital accumulation (i.e., net-valued low entropy fund available for human consumption). These entropy production accounts permits holistic assessment of sustainability in the following state condition: (a) steady-state, (neg-entropy = entropy), (b) surplus-state, (neg-entropy > entropy) and (c) deficit-state (neg-entropy < entropy). Examined are the root of entropy accounting in the labour theory of values and the Ricardian (long-term) production equations of distribution of wages, profits and rent. This is contrasted to the neoclassical general equilibrium hypothesis of unlimited productivity per unit of consumption and where distributions are determined by state conditions of the supply and demand curve governed by consumer choice and/or preference functions. We introduce the equations of the entropic process described by G-R Flow-Fund Model whereby quantitative (material) production functions are transcribed into qualitative (immaterial) consumption functions, (i.e., enjoyment of Product). This powerful logic of entropy production as a limit function of Production, Consumption and Capital Accumulation, reinstates the Ricardian hypothesis of the longterm end result of Capitalism: Wages fall to subsistence, Profits fall to zero, and Rents rise to a maximum. The SAGE-P provides the accounts of entropy production essential for redirecting the trajectories of unsustainable growth, towards a sustainable economy reduced to maintaining the stock (i.e., wealth) of any well-defined Low Entropy Fund (LEF) available for human consumption, (see Fig. 6.4). The object of policy is thus redefined as the minimum socially acceptable rate of entropy production per unit of consumption."

*** Article: Towards a Comprehensive Framework for Environmental Statistics: A Stress-Response Approach.** "2016 Berlin Conference on Global Environmental Change: Transformative Global Climate Governance après Paris on 23 and 24 May 2016System of Accounts for Global Entropy-Production (SAGE-P): A Coherent Accounting of the Econosphere, Sociosphere, and the Ecosphere formalised in Topological Domain Spaces (TDS) Anthony Friend, (University of Ottawa)

Available from: https://www.researchgate.net/publication/281396191_Towards_a_Comprehensive_Framework_for_Environmental_Statistics_A_Stress-Response_Approach [accessed Feb 15 2021].

Abstract: This paper describes the accounts beyond GDP, described by the TDS of the Econosphere, Sociosphere and Ecosphere governed by the Second Law of thermodynamics. Defined are complex input/output algorithms of the 1entropic process reduced to nonlinear double-entry bookkeeping for the flow variables of ’production’ defined as ‘neg-entropy,’ the flow variables of ‘consumption’ defined as entropy and the stock variables of capital accumulation, defining the Low Entropy Fund (LEF) available for human-consumption. The balance sheet of SAGE-P assumes a pluralistic-value formulation in the following states of the LEF: (a) steady-state: (i.e., rate of neg-entropy production t+n = rate of entropy production t+n), (b) surplus-state: (i.e., rate of neg-entropy production t+n > rate of entropy production t+n), and (c) deficit-state: (i.e., rate of neg-entropy production t+n < rate of entropy production t+n). The roots of SAGE-P may be found in the labour theory of value coupled with the Malthus-Ricardian (long-term) prediction of wages falling to subsistence, profits falling to zero and rents rise to a maximum. Contrast this to the neoclassical (long-term) prediction of growing efficiency in production satisfying human wants, through the hypothetical supply and demand curve governed by rational choices of the agents of production, consumption and investment. Introduced to the reader are the equations of the entropic process described by G-R Flow-Fund Model. The object of the accounts is to translate the quantitative (material) production of the Econosphere (i.e., values conserved-in-exchange) into the distinct language of qualitative immaterial product of the Sociosphere (i.e., values conserved-in-use) and the quantitative/qualitative material product of the Ecosphere (i.e., values conserved in themselves, or existential). Central, and unique, to SAGE-P is the clear distinction made between the accounting of ‘physical objects/functions’ that occupy space and time, and ‘abstract objects/functions,’ that occupy time but not space. This type of accountings enables the mapping of material world on the immaterial world and vice versa. Another unique feature of SAGE-P is the implicit hierarchical structure of values where the objects and functions of the Econosphere is an implied sub-set of the larger Sociosphere, which in turn, is a subset of the still larger Ecosphere. The SAGE-P provides the conceptual framework for the coherence of production, consumption and capital accumulation of the whole Planet, and yet, like any coherent structure, enables the user to define the boundary conditions of the accounting objects and function to fit their analytical frame."