The method that Canada and other developed countries use to measure productivity growth generally ignores the pollutants that are produced by the industrial process. For example, greenhouse gas emissions, though an inevitable consequence of production processes, are excluded from the...

Despite the progress that has been made in the measurement of productivity, there have been few attempts to cast emissions of bad outputs within a joint-production framework. This paper does so. It proposes an experimental framework that depends critically on the shadow price estimates of...