Physical Measurement of Value and Economics (PHMV & Econ)
Key Potential Applications in Economics
Based on the PHMV axioms and the logic of a physical approach to value.
Objective valuation of resources and assets
Instead of market prices or subjective assessments — value is calculated through the minimal energy + information costs required to produce or maintain the asset.
Example: Comparing two factories — which one is “more valuable” not based on profit, but on the efficiency of converting energy and information into useful output (productivity, durability, ecological footprint). This is particularly relevant for sustainable development and green economics.
Alternative to monetary metrics in non-market systems
In planned economies, resource allocation (e.g., large corporations, public sector, ecosystems), or post-monetary scenarios (resource-based economy), PHMV provides a physical “equivalent” of value — free from inflation, speculation, or subjective preferences.
Projects and investments can be ranked according to their “physical efficiency in achieving the goal.”
Correction of market distortions
Conventional economics frequently undervalues externalities: pollution, resource depletion, biodiversity loss. PHMV incorporates them directly by accounting for the additional energy costs of remediation or compensation.
Example: True value of coal/oil versus renewable sources — not based on current market price, but on long-term energy–information costs across the full chain (extraction → use → disposal → ecosystem restoration).
Economics of complexity and AI/robotics
In systems with autonomous agents (robots, AI-driven economies), PHMV can serve as the foundation for internal resource “pricing.” An agent decides whether to invest energy/information in a task based on the physically computed value of the goal.
This directly relates to AI alignment and decision-making in multi-agent systems.
Transition to post-capitalist models
PHMV enables discussion of “value without money”: how to allocate resources in a society where the objective is to maximize physical utility (health, knowledge, resilience) rather than profit. It forms a bridge between physics, economics, and ethics.
Current limitations and challenges
PHMV still lacks a broad empirical base and standardized measurement protocols (precisely what is being developed within this community).
Moving from qualitative axioms to quantitative models requires substantial work (algorithms, datasets, validation).
It competes with established theories (marginalist, labor, Austrian, etc.) — convincing demonstrations of superiority in real-world cases are needed.
Overall, in economics PHMV has the potential to become a tool for a physically grounded re-evaluation of everything: from GDP (redefined as “physical utility” rather than monetary turnover) to investment decisions and global resource policy. If further developed, it represents a potentially revolutionary alternative to subjective and monetary-based approaches.
We welcome your thoughts and contributions on this essential next step in the evolution of our civilization. Feel free to share ideas, critiques, examples, or proposals for concrete models and applications.
(If posting as a new record, you can add keywords like: PHMV, physical value measurement, objective economics, energy-information trade-offs, sustainable valuation, post-monetary economy, AI economics.)
Let me know if you want any adjustments — shorter/longer version, more formal tone, added sections, etc. Ready to refine!