Thermoeconomics - The Future of Economic Processes

In economics, dynamic equilibrium is where quantities grow at a fixed rate; similarly in chemistry, dynamic equilibrium is where the forward and backward rates of reaction are the same in a closed system. This article will focus on the interdisciplinary nature of chemistry and economics, observing how chemists use economics to make sure a particular reaction is economical and how chemistry can be used to predict the behaviours of economic processes.

Low temperatures may cause equilibrium to shift to the right provided that the forward reaction is exothermic. This, however, makes reactions rather slow as the particles have no kinetic energy therefore the temperature needs to be raised. Raising the temperature is not very economical, however, it saves time, which a chemist always likes! This is a compromise between yield and rate. Alternatively, a chemist may decrease temperatures so a particular reaction can cost less.

Similarly, with reference to pressure, if there are more molecules on the left than the right of an equation, high pressures will increase the yield of products. High pressures  are expensive so it is more economical for chemists to decrease the pressure; pressure can be increased as a compromise between rate and yield, although it would cost more.

A real life example of a process like this is the Haber process, which is how millions of tonnes of ammonia are processed each year. A temperature of 400 degrees is used to compromise between rate and cost. A pressure of 200 atmospheres, which is not the highest, is used as it is costly to generate high pressure. In this way, we can see that chemists can truly be thought of as economists.

The description above describes Le Chatelier’s principle, which says that the position of equilibrium shifts to counteract a change in volume, concentration or pressure. This is similar to economic variables shifting the position of economic equilibrium, showing that a change to an economic relation can affect economic outcomes. Being able to adjust the equilibrium position hugely helps economic industries; it allows us to increase the yield in reactions, increasing profit, thanks to Le Chatelier’s principle.

Why does Le Chatelier’s principle work?

Le Chatelier’s principle comes from the laws of thermodynamics which says that everything will move from order to disorder. In terms of Le Chatelier’s principle, this means that a system will always move to a more disordered system. Before we begin to understand the second law of thermodynamics, we must understand entropy, which is a quantity associated with randomness or disorder. A gas has a higher entropy than a liquid, which has a higher entropy than a solid, since the more free the particles are to move, the higher the entropy.

We now get into the complex world of thermoeconomics. Thermoeconomics states that the economy is entropic as economic processes obey thermodynamics. Entropy in economics is associated with the degree of randomness or uncertainty pertaining to a market.

What are economic processes?

These are anything that affect material wealth including, but not limited to, smelting, cutting, and machining. Entropic law says that entropy always increases; this is more accurately referred to as the entropy of the universe increasing. A similar concept applies for economic processes. An example of this would include matter involved in these processes becoming less useful as it has a diminishing marginal utility.

Chemistry and economics are highly interlinked subjects and this article merely scratches the surface of this relationship.

Joshlynn Owusu