Biophysical Economics Institute (BPEI) is driven by a profound mission to bridge the gap between natural sciences and economic decision-making to address our world's urgent environmental and economic challenges.
Companies make investment choices that have profound long-term implications for our world and all who inhabit it, yet they face short-term pressures to maintain profits. At BPEI we foster perspectives that simultaneously consider not just short-term profits but also the long-term sustainability of our planet.
We do this by promoting and supporting analyses of energy systems and technologies that are methodologically rigorous and rooted combinations of the natural sciences and economics.
Traditional decision-making tools often overlook investments' full costs and consequences, fueling our sense of urgency. We recognize that the choices made today will shape the world for generations to come, prompting our unwavering commitment to equipping corporate decision-makers, investors, and advocates of Environmental, Social, and Governance (ESG) principles with the insights needed to navigate responsibly through the complexity of today’s energy and economic landscapes.
As our name implies, our approach is grounded in biophysical economics. Biophysical economics integrates natural sciences, particularly thermodynamics, into economic analyses. Isaac Newton’s laws of motion state that for every action from one object to another, there is an equal and opposite reaction. Similarly, every economic transaction has an opposite energy transaction. Because these transactions occur in different domains of understanding, decision makers are often confounded as to their integration? The biophysical economic lens emphasizes enhanced understanding between energy and money, such as the role of energy efficiency, short versus long-term feedbacks (quarterly vs decadally), and different scales of analysis (technology vs. economy). Without this lens we cannot define, sustainability, and determine the costs and benefits of an Energy Transition. By providing objective, science-based analysis and bridging the gap between theory and practice, we empower stakeholders to make informed decisions that optimize the use of energy resources, setting a new standard for economic analysis in our rapidly changing world.
BPEI is led by our distinguished Advisory Board of leading experts in science and engineering, economics, corporate finance, accounting and auditing, investment management, ESG, and public policy.
With a track record of promoting rigorous analysis and forthright transparent discussion, BPEI is a trusted guide for organizations to navigate the complexities of today's resource-constrained world.