Non-Equilibrium Thermodynamics of Value

Capital, Revenue and the Non-Equilibrium Thermodynamics of Value

By Clair Quentin. Cheltenham and Northampton, MA: Edward Elgar, 2026

Notes

The title of the book is Non-Equilibrium Thermodynamics of Value. But the discussion often centers on labor theory of value. Why not thermodynamic theory of value, or entropy theory of value? In Entropy Economics: The living basis of value and Production (2025), entropy theory of value was proposed, and its relation with labor theory of value was discussed extensively. Many problems discussed in this review are resolved in that book. In particular, the transformation problem in Ricardian and Marxian labor theory of value will not arise. From labor theory of value, production systems with high labor contents will contain higher value. But this is not we observe from the market price. There is a “transformation problem” from value derived from labor to market price. From entropy theory of value, labor forms part of value. Other low entropy resources, such as fossil fuels, form other parts of value. There will be no perceived systematic inconsistencies between value derived from labor and market price.  

This book also discussed dissipative structure in length. This is a standard narrative from Prigogine’s theory. But it doesn’t really clarify and simplify our understanding about the fundamental property of biological and economical systems, why the system “makes more of itself than it uses up”. In Entropy Economics, instead of going over dissipative structure, the authors extend the Carnot principle to connect the maintenance of higher gradient with higher fixed cost. This transforms the discussion of physics into economics. A great amount of mystery surrounding dissipative structure dissipates.