Thermodynamics,energy price and standard of living

This article takes issue with Per Thoresen's assertion, in an earlier paper, that energy price increases need not reduce living standards. Edward Saraydar maintains that Thoresen's conclusion is based on very strong assumptions, ignoring the basic economic proposition that, given demand, it is conditions of supply that determine price. Thoresen's ‘thermodynamic analysis’ does emphasize the role of energy input into production, but adds little insight as to how increasingly scarce non-renewable energy sources may affect future economic welfare, and is misleading in its policy response to price increases.