Answer to Question #77412 in Microeconomics for aqsa

Question

plzz tell me the growth model in which energy labour and capital is used but capital is replaced by energy .then the model has energy and labor input tell me the theory which discuss just energy and labour as input .especiAlly in case of industrial output.

Answer 1

There are two types of factors: primary and secondary. The previously mentioned primary factors are land, labour (the ability to work), and capital goods. Materials and energy are considered secondary factors in classical economics because they are obtained from land, labor and capital. [1]
The industrial revolution released the constraints on economic growth by the development of new methods of using coal and the discovery of new fossil fuel resources. Time-series analysis shows that energy and GDP cointegrate, and energy use Granger causes GDP when capital and other production inputs are included in the vector autoregression model. [2]
Source:
1) https://en.m.wikipedia.org/wiki/Factors_of_production
2) https://www.google.com.ua/amp/s/www.researchgate.net/publication/49846797_The_role_of_energy_in_economic_growth/amp