TY - JOUR
T1 - The underestimated contribution of energy to economic growth
AU - Ayres, R.U.
AU - van den Bergh, J.C.J.M.
AU - Lindenberger, D.
AU - Warr, B.
PY - 2013
Y1 - 2013
N2 - Standard economic theory regards capital and labour as the main factors of production that satisfy the "cost-share theorem". This paper argues that when a third factor, namely energy, is added physical constraints on substitution among the factors arise. We show that energy is a much more important factor of production than its small cost share may indicate. This implies that continued economic growth along the historical trend cannot safely be assumed, notably in view of considerably higher energy prices in the future due to peak oil and climate policy. © 2013 Elsevier B.V.
AB - Standard economic theory regards capital and labour as the main factors of production that satisfy the "cost-share theorem". This paper argues that when a third factor, namely energy, is added physical constraints on substitution among the factors arise. We show that energy is a much more important factor of production than its small cost share may indicate. This implies that continued economic growth along the historical trend cannot safely be assumed, notably in view of considerably higher energy prices in the future due to peak oil and climate policy. © 2013 Elsevier B.V.
U2 - 10.1016/j.strueco.2013.07.004
DO - 10.1016/j.strueco.2013.07.004
M3 - Article
VL - 27
SP - 79
EP - 88
JO - Structural Change and Economic Dynamics
JF - Structural Change and Economic Dynamics
SN - 0954-349X
ER -
