ABSTRACT
This introduction presents an overview of the key concepts covered in the subsequent chapters of this book. The book describes the structure of a multi-sectoral, general equilibrium growth model of the US economy that gives special attention to the energy sectors and presents results from the simulation of this model under varying conditions of energy supply. A major characteristic of the US economy has been its growth in real output. From 1900 to 1970 real production increased at an annual rate of 3.3", amounting to a nine-fold increase. In the neo-classical theory of economic growth, the rate of growth in output is the sum of the rates of growth of labor input and labor productivity. This result is based on constant costs in production. The interactions between sectors in the supply of intermediate inputs to each other as well as their mutual competition in the factor market necessitates a general equilibrium context.
