Where Does Our Energy Go?
The answer depends on which economy you're measuring.
Our primary energy source is the sun to which we supplement with what we derive from combustible and fissile materials extracted from the earth. Regardless of the source, our access to energy is limited, that is, at least for now, we have a finite energy budget.
Those familiar with permaculture will recognize the core tenets: 1) Care for the Earth, 2) Care for People, 3) Return the surplus to the system. We can depict our energy budget using the 1st tenet (x, horizontal) and the 2nd (y, vertical) in a cartesian layout as shown. "Surplus" in our case refers to whatever skills, time, materials, or energy is left over once our needs are met.
Q1(quadrant one) represents the energy spent benefitting us (+y) but at Earth's expense (-x)
Q2 represents the energy spent benefitting neither people (-y, except for a few), or the Earth (-x).
Q4 represents the energy spent benefitting us (+y) and the planet (+x). The ERN exists to estimate the natural value of human-controlled energy spent this way.
Q3 represents approaches that prioritize Earth's wellbeing (+x) at the expense of people (-y).
We can think of the Earth as a bank at which we make energy withdrawals and deposits (Q1–Q4). When we make a cash deposit at a conventional bank we're issued a receipt. The ERN is the clerical utility designed to store evidence of your regenerative (Q4) energy deposit (RED), estimate its natural value (potency, P), and issue your receipt (RET).