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System of Accounts for Global Entropy-Production (SAGE-P): The Accounting in the Topological Domain Space (TDS) of the Econosphere, Sociosphere, and the Ecosphere
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. The Appendices provides a window on the formalism underpinning the accounting concepts of SAGE-P.