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Adjusting Productivity for Pollution in Selected Asian Economies

Author

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  • Thai-Thanh Dang

    (OECD)

  • Annabelle Mourougane

    (OECD)

Abstract

Multifactor productivity (MFP) is increasingly used in economic policy, not least to compute potential output. Most measures are based on a standard production function combining labour and capital, but do not incorporate the negative by-products of the production process such as air pollution that could have deleterious effect on health and productivity in the medium to long term (see for instance OECD (2014)). The failure to account for the costs of environmental damages and the benefits associated with emission reduction impart a bias to standard measures of MFP. Ignoring these dimensions can give a misleading idea of growth prospects over the medium to long term...

Suggested Citation

  • Thai-Thanh Dang & Annabelle Mourougane, 2014. "Adjusting Productivity for Pollution in Selected Asian Economies," OECD Green Growth Papers 2014/1, OECD Publishing.
    • Handle: RePEc:oec:envddd:2014/1-en
    DOI: 10.1787/5jxvd5rq5lzv-en
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    Cited by:

    1. Corsatea, Teodora Diana & Giaccaria, Sergio, 2018. "Market regulation and environmental productivity changes in the electricity and gas sector of 13 observed EU countries," Energy, Elsevier, vol. 164(C), pages 1286-1297.
    2. Josh Martin & Rebecca Riley, 2023. "Productivity measurement - Reassessing the production function from micro to macro," Working Papers 033, The Productivity Institute.
    3. Getu Hailu, 2023. "Reflections on technological progress in the agri‐food industry: Past, present, and future," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(1), pages 119-141, March.

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