Eco-efficiency indicators in German Environmental Economic Accounting

Abstract

Any economic activity involves using the natural environment. At the same time the principle of sustainable development requires to deal with nature as carefully as possible. Therefore it is important to measure how and to which extent nature is used by economy over time. There are three essential classes of input factors from nature into economy that may be distinguished: the supply of goods (such as raw materials), the supply of area for the location of economic activity and nature's function as a sink for the discharge of residuals and pollutants. For these classes more detailed input factors can be specified. In addition to the measurement of mere quantities information on the efficiency of the factor use is of major importance. In German Environmental Economic Accounting (EEA) productivity indicators are used to measure eco-efficiency at the national level. The article describes how productivities are defined and which natural input factors are covered in German EEA. Two examples (raw materials, carbon dioxide emissions) show in detail how the productivities are calculated. The methods described are illustrated by various figures for Germany.