Resources and Environmental Economics

The 2022 energy crisis has been a major shock to the entire world. The world entered 2022 with expected (oil) or actual (coal) shortages. This was the beginning of the crisis. The environmental agenda gave way to increasing the security of energy supply. Both in terms of ensuring a smooth energy transition and being prepared for extreme scenarios. Today, the looming energy crisis seriously threatens the maintenance of normal society, including fuel for transport and logistics, electricity for lighting and work, and gas for our kitchens. The world is now facing a very serious energy crisis - a period of energy shortages and rising prices. This energy crisis is caused by a number of factors, including the disappearance of non-renewable energy sources such as oil. However, the most pressing factor is war. Energy shortages will increase costs for individuals, as many will not have enough energy to meet their basic needs. This will force people and governments of the UN and BRICS+ to look for solutions to save energy. The author of the article believes that the appropriate and effective solution to save energy is to counteract wars and conflicts and move to peaceful life.

This study clarifies the concepts of “feedback”, “positive feedback”, and “negative feedback” and explains the philosophy of the coupling principle of positive and negative feedback. The evolution process of the system is the organic coupling of positive and negative feedback, and only the reciprocating cycle of positive and negative feedback can ensure the occurrence and existence of heterogeneous new things. In the economic system, the law of increasing returns corresponds to the positive feedback mechanism, whereas the law of diminishing returns corresponds to the negative feedback mechanism. This study briefly expounds on the differences in understanding between the law of increasing returns and diminishing returns, and the equilibrium and disequilibrium of economic operation in the economics circle, based on the histories of economic thoughts and social and economic forms. This study emphasizes that instead of dividing and opposing each other, the idea of static partial equilibrium and dynamic general nonequilibrium in epistemology can be united to solve this difference. Finally, this paper explains the essential relationship and compatibility between the law of diminishing returns and increasing returns from the characteristics, nature, and proportional changes of tangible and intangible factors of production. Applying the positive and negative feedback coupling principle can clarify the essential relationship between the law of diminishing returns and increasing returns. From the philosophical level and epistemological significance, it can bridge the fundamental differences between equilibrium and nonequilibrium theories, which in turn, can help realize the creative synthesis of economic theory.