Role of lower EROEI:
EROEI is responsible for putting a halt and reversing the economic growth. An economy faces secular stagnation when there is less to zero demand in the market for a prolonged period. The term was first coined by economists of the United States during the Great Depression. It came to their understanding that the nation will undergo a slow growth for a very long time. EROEI is considered as another reason for stagnant and failed growth of an economy.
Since the discovery of EROEI, there has been a significant increase in the consumption of energy. This started a chain of series, that is, decreasing number of fossil fuel reserves which in turn results in low EROEI. A low EROEI results in secular stagnation and failure to grow.
