What 300 Years of Firewood Prices Say About the Economy

In this episode of the Odd Lots podcast, hosts Tracy Alloway and Joe Weisenthal interview Nicholas Muller, an economics professor at Carnegie Mellon, about his research on the historical prices of firewood in the American economy from 1700 to 2010. Muller discusses the reasons for focusing on firewood, its significance as the primary energy source before the Civil War, and the data gathering process, which involved analyzing probate records and advertisements. The conversation covers the three main patterns in firewood prices: volatility with no trend from 1700-1800, real price increases from 1800 to the Civil War due to growing demand and scarcity near cities, and relative stability after the Civil War, with a resurgence during the energy crises of the 1970s. Muller also touches on the transition from firewood to coal, the impact of railroads, and the relationship between social upheavals and energy transitions, as well as the importance of valuing natural capital and informal economic activities.