ABSTRACT
Chapter 7 focuses on economic analysis that is done to support decision-making. During the peak and transition, a new economic view is required. The first change in economic perspective is to use biophysical economics. Energy return on energy invested (EROI) is a key analysis tool for decision-making about new energy technologies. The transition economics view does not use the discount rate, and its approach is to move to different points into the future, project the constraints of the forward operating environment into the future and evaluate which current decision would lead to a superior competitive position in the future. Any kind of project requires financial return. Finding the financial return from shift projects that reduces consumption requires a new kind of thinking about costs and benefits. Some major companies have set emissions reduction and sustainability targets. This industry leadership can be seen as demand for transition engineering innovation, design and management work.
