Home > Uncategorized > Environmental Productivity (graph – 29 countries)

Environmental Productivity (graph – 29 countries)

 When economists talk about productivity, what they usually mean is “labor productivity.” Labor productivity measures the amount of income produced per hour of work.

When economists talk about productivity, what they usually mean is “labor productivity.” Labor productivity measures the amount of income produced per hour of work.

The OECD has put out a separate measure called “environmental productivity” which quantifies how much national income is created per kilogram of carbon dioxide emissions. The data is from 2010, and national income is measured in 2005 PPP-adjusted U.S. dollars. In the figure below, the results have been indexed to 1 for the United States. The countries with a light blue bar have lower environmental productivity than the U.S.; countries with a dark blue bar have equal environmental productivity; and countries with a dark tan bar have higher environmental productivity. The graph only includes countries deemed to be “advanced economies” by the IMF.
CEPR

Environmental Productivity

  1. antireifier
    March 28, 2016 at 2:58 pm

    Does this mean that we could see this as a measure of efficiency? Most nations produce more income from their carbon use than the USA and Canada is behind the USA.

  2. merijnknibbe
    March 30, 2016 at 10:44 am

    #antireifer Yes, this can be used as a measure of efficiency. Switzerland and Norway for instance use a lot of hydro power.

    Also: these data are based on input output models of the economy, which are based upon physical flows of goods (oil, end products, technicalley: make and use tabels;http://www.bea.gov/industry/io_benchmark.htm ) in the economy.

    DSGE models can not be used to calculate this as these are in the end not based on measured inputs and outputs but on the elusive and ill defined concept of ‘social utiity’ instead of what people actually do, use and produce.

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