ABSTRACT
This chapter presents the results of simulations of the growth model under different conditions of energy supply. A comparison of these simulations shows the impact of energy costs on economic growth in the model. Most of the numerical assumptions were common to all the simulations; only the assumptions governing energy supply were varied. The parameters of the model were chosen to closely approximate the US economy in 1971, the base year. This year was chosen because it was the last year for which much of the data on which the parameters were based was available. While it is certainly possible to simulate models over a longer time period, the limitations in the assumptions diminish the confidence in the results for later time periods. With increases in cumulated output the cost of additional output rises as producers use up the easily exploited grades of reserves and move on to those more difficult to exploit.
