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About the ProjectThe goal of this project is to shed light on the relationship between economic activity and the environment by exploring the linkages between changes in our natural capital and our measures of productivity generally, and through the construction of an environmentally adjusted measure of productivity specifically.
While it is now commonly accepted that economic activity and the state of our environment are linked, many economic measures still fail to incorporate the environment – both the things we draw from it and the pollution we release into it. By developing and calculating measures of productivity that include natural capital, Canada may be able to better understand these linkages. This, in turn, may lead to the identification of strategies that can help Canada become more efficient and innovative in the use and protection of natural capital, and thus more productive and more prosperous.
Using the forestry sector as a case study, this project aims to construct an environmentally adjusted measure of multifactor productivity. In doing so, we aim to add another layer of understanding to the environmental and economic performance of this sector. The proposed measure will have relevance to the Canadian economy as a whole.
Project Research & Reports
- Download the report: "Linking Natural Capital and Productivity - The Rationale for Building an Environmentally Adjusted Measure of Productivity"
- Read the report's key messages in French
- Check out early research findings: "Survival of the Cleanest? Evidence from a Plant Level Analysis of Pollutant Emissions in Canadian Pulp and Paper Industry, 2005-2013"
- Read the blog post: Why We’re Examining the Link Between Natural Capital & Productivity
- Read the research paper: Natural Capital Measurement at Statistics Canada: Current Status and Untapped Potential
- View the Canadian Economics Association presentation on Natural Capital Measurement at Statistics Canada
- Read the research paper: Partial versus Total Factor Productivity: Assessing Resource Use in Natural Resource Industries in Canada