Stuart J. Smyth
Research Scientist, Department of Bioresource Policy, Business and Economics, University of Saskatchewan
Because prices are a strong influence on decisions, in order to achieve their policy goals governments will need to work to align prices with those goals. Where prices are pulling in the direction of policy goals, it will be much easier to achieve those goals. Governments in
The aim of this report is to explore how environmental markets can be employed as a way to maintain and improve environmental quality and limit pollution as Southern Ontario’s population and economy grow. By creating an explicit value where none currently exists, they can help incentivize Southern Ontario’s businesses, farmers and other landowners, and citizens to protect Ontario’s air, water, and biodiversity.
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.