A formula is given for the variation of the Hawking energy along and o
ne-parameter family of compact spatial 2-surfaces. A surface for which
one null expansion is positive and the other negative has a preferred
orientation, with a spatial or null normal direction being called out
going or ingoing as the area increases or decreases respectively. A ge
ometrically natural way to propagate such a surface through a hypersur
face is to choose the foliation such that the null expansions are cons
tant over each surface. For such uniformly expanding foliations, the H
awking energy is non-decreasing in any outgoing direction, and non-inc
reasing in any ingoing direction, assuming the dominant energy conditi
on. It follows that the Hawking energy is non-negative if the foliatio
n is bounded at the inward end by either a point or a marginal surface
, and in the latter case satisfies the Penrose-Gibbons isoperimetric i
nequality. The Bondi-Sachs energy may be expressed as a limit of the H
awking energy at conformal infinity, and the energy-variation formula
reduces at conformal infinity to the Bondi-Sachs energy-loss formula.
The relevance to the cosmic censorship hypothesis is discussed.