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Environmentally Adjusted Multifactor Productivity: Methodology and Empirical results for OECD and G20 countries

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  • Miguel Cárdenas Rodríguez

    (OECD)

  • Ivan Haščič

    (OECD)

  • Martin Souchier

Abstract

This paper further refines the OECD framework for measuring the environmentally adjusted multifactor productivity growth that seeks to incorporate environmental services in productivity analysis. Compared to standard productivity measurement, this framework allows accounting also for the use of natural capital (currently including 14 types of fossil fuels and minerals) and the emission of pollutants as negative by-products (currently including 8 types of greenhouse gases and air pollutants). An updated series of the indicator is presented, with a geographic coverage extended to all OECD and G20 countries for the 1990-2013 time period. The indicators presented here allow the sources of economic growth to be better identified, and growth prospects in the long run to be better assessed. Le présent rapport affine le cadre de mesure de la croissance de la productivité multifactorielle corrigée des incidences environnementales utilisé par l’OCDE pour incorporer les services environnementaux dans l’analyse de la productivité. Comparé à la mesure classique de la productivité, ce cadre permet également de tenir compte de l’utilisation du capital naturel (actuellement 14 types de combustibles fossiles et minéraux) et des émissions de polluants en tant que sous-produits négatifs (actuellement 8 types de gaz à effet de serre et polluants atmosphériques). Une série actualisée de cet indicateur, dont la couverture géographique s’étend à tous les pays de l’OCDE et du G20, est présentée pour la période 1990-2013. Ces indicateurs permettent de mieux identifier les sources de croissance économique et de mieux évaluer les perspectives de croissance sur le long terme.

Suggested Citation

  • Miguel Cárdenas Rodríguez & Ivan Haščič & Martin Souchier, 2016. "Environmentally Adjusted Multifactor Productivity: Methodology and Empirical results for OECD and G20 countries," OECD Green Growth Papers 2016/4, OECD Publishing.
    • Handle: RePEc:oec:envddd:2016/4-en
    DOI: 10.1787/5jlr2z7ntkf8-en
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    References listed on IDEAS

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    1. Nicola Brandt & Paul Schreyer & Vera Zipperer, 2014. "Productivity Measurement with Natural Capital and Bad Outputs," OECD Economics Department Working Papers 1154, OECD Publishing.
    2. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634, April.
    3. Carl Obst & Mark Eigenraam, 2017. "Incorporating the environment in agricultural productivity: applying advances in international environmental accounting," Chapters, in: Tihomir Ancev & M. A.S. Azad & Francesc Hernández-Sancho (ed.), New Directions in Productivity Measurement and Efficiency Analysis, chapter 7, pages 151-172, Edward Elgar Publishing.
    4. Cárdenas Rodríguez, Miguel & Haščič, Ivan & Souchier, Martin, 2018. "Environmentally Adjusted Multifactor Productivity: Methodology and Empirical Results for OECD and G20 Countries," Ecological Economics, Elsevier, vol. 153(C), pages 147-160.
    5. Tihomir Ancev & M. A.S. Azad & Francesc Hernández-Sancho (ed.), 2017. "New Directions in Productivity Measurement and Efficiency Analysis," Books, Edward Elgar Publishing, number 17409.
    6. Kevin J. Fox & Nicola Brandt & Paul Schreyer & Vera Zipperer, 2017. "Productivity Measurement with Natural Capital," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63, pages 7-21, February.
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    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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