Count emissions-reduction as productivity: Intergenerational report

Brandon How

Reductions in emissions intensity should be considered a productivity measure to encourage the uptake of low-emissions technologies, according to the Albanese government’s first intergenerational report.

With existing productivity measurements failing to capture the cost of pollution or emission efficiency, the report notes Australia “underestimates benefits from technological and other improvements to production that increase the carbon emissions efficiency of production”.

The Intergenerational Report (IGR) also suggests measuring the energy productivity of industries in more detail, as well as the cost of greenhouse gas emissions and other pollutants as inputs to and outputs of production, citing recent research from the University of Cambridge.

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