Value = Energy + Labour (MbVEL): a simple and transparent indicator as an alternative to GDP (Gross Domestic Product)

The aim of this study is to explain, simply and clearly for everyone, that at equal VALUE (V), if the cost of renewable energy tends to 0, the pay of LABOUR (L) can rise up to the limit of the VALUE. VALUE is defined as the sum of just two terms, ENERGY (E) and LABOUR (L), both measured in euro and directly observable: V = E + L. Unlike GDP (Gross Domestic Product), whose construction requires dozens of items, estimates and accounting conventions, MbVEL (Value = Energy + Labour) can be computed and checked by anyone with a spreadsheet, starting from public data. The study proposes five indices for each country C (COUNTRY): MbVEL-1 (ratio of pay L to energy E, in euro), MbVEL-2 (renewable energy producible on rooftops and agri-photovoltaic land, in TWh/year), MbVEL-3 (renewable energy producible along all roads, in TWh/year), MbVEL-4 (energy and heat obtained with hydrogen, in TWh/year) and MbVEL-5 (offshore wind potential, in TWh/year), computed from public data for 26 European Union member states. MbVEL is the main work; MbEBC (EnergiaBeneComune) is the applied work that answers how to bring the cost of energy to tend to 0. In 2024, compensation of employees in the territories considered is about 7.6 times energy expenditure (net of the pay of the energy sector, to avoid double counting): energy therefore weighs about 13% on pay, and this is the maximum margin within which, with energy at a cost tending to 0, pay could grow at equal value. AI-use statement: The original idea of the Value = Energy + Labour indicator is the author's, Marco Bava, as are the considerations collected in the author's preparatory document "Trilogia economica dell'idrogeno". Data collection, calculations and drafting were carried out with the assistance of an artificial intelligence assistant (Claude, Anthropic); the author reviewed the contents and is solely responsible for the work.