Environmentally adjusted multifactor productivity
Accounting for renewable natural resources and ecosystem services
Multifactor productivity is a comprehensive measure of productivity where the underlying
production function accounts for multiple factor inputs, traditionally labour and
produced capital. While single-factor productivity is intuitively simple, such measure
offers a biased picture of the economy because it attributes all variation in output
growth to a single factor input (e.g. consumption of fossil fuels or material resources)
while the role of other factors is ignored. Multifactor productivity aims at addressing
this shortcoming, and as such it is a valuable component of the OECD set of Green
Growth headline indicators. This paper presents further progress in measuring the
EAMFP and related growth accounting indicators in 52 countries for 1996-2018. An important
novelty is the inclusion of renewable natural resources such as land, timber and fisheries,
and ecosystem services such as coastal and watershed protection. Exploratory results
on accounting for renewable energy resources are also included.
Available from November 20, 2023
In series:OECD Green Growth Papersview more titles