# Energy in production

Economists use labour and capital as the primary factors of production in income approach to output calcluation. Both labour and capital are reproducible factors. I can compute labour and capital cost shares (i.e.$$\frac{\text{Total Wages}}{GDP}$$ and $$\frac{\text{return on capital}}{GDP}$$) in national income.

I am interested in estimating energy cost share in GDP. Considering that energy is treated as an intermediate input that is used up in production, can I still estimate cost share of energy in GDP i.e. $$\frac{\text{energy expenditure}}{GDP}$$? in other words, can I treat energy as a factor of production and compute its cost share without adding back energy expenditure to GDP?