The contribution of energy consumption to total factor productivity

Total factor productivity is generally calculated as the productivity of capital + labour as a whole. However, production requires at least three production factors: capital, labour and energy. What results from the change in energy consumption is therefore ascribed to the growth in total factor productivity (tech nological progress). For OECD countries as a whole, we will therefore take a closer look at total factor productivity, as usually calculated, to determine what is due to technological progress and what is due to energy consumption. We see that disregarding energy as a production factor leads to a constant underestimation of total factor productivity and its growth from 1996 to 2013.