A Minimal Thermodynamic Framework for Economic Dynamics

In the tradition of Georgescu-Roegen, we introduce a framework for economic modeling in which all inputs and outputs are aggregated into a single construct: energy. The objective of the model is to present a minimal foundational framework that describes the physical limits of economic activity, accounting for the transition out of the Malthusian equilibrium into the modern era of economic growth and a contemporary phase of degrowth. The model conceives the economic system as energy flows traversing three main reservoirs: the human system, the environment, and a finite resource. The economic module is intentionally simple in order to isolate the structural role of energy transformation in shaping long-run macroeconomic dynamics. Under simple parametric assumptions, the economy behaves like a damped harmonic oscillator, suggesting that sustained exponential growth in material throughput is incompatible with thermodynamic constraints. We also present an estimate of the parameters in the economic tradition of ''calibration'' and an illustrative simulation under constant-parameter assumptions. This framework presents several avenues for further research, including historical estimates, the impact of recycling technology on degrowth, and the expansion of economic and demographic modules. The model does not claim to exhaust the mechanisms governing economic growth, but aims to clarify the biophysical constraints within which such mechanisms must operate.