In basic economic growth models, energy is neglected as a production factor, and output is generated from capital and labor in a single-sector process, with most of growth attributed to an exogenous residual. However, alternative approaches argue for a multi-sector system in which the major...

Neoclassical models disregard the role of energy in production, equating a factor's output elasticity with its cost share, but failing to explain growth without a residual term. In contrast, ecological economics acknowledges energy's importance in production, regardless of its cost share. The...

Mainstream economic growth models downplay the role of energy, while attributing most of growth to an exogenous residual – total factor productivity (TFP). This makes them unsuitable to tackle the challenge of marrying sustainability and economic development targets. Meanwhile, research...