Saturday, April 27, 2013

Measuring the Green Economy


Measuring how green an economy is, is perhaps one of the toughest aspects of understanding development trends that are going to affect us in the future. Luckily, there are several places this can be measured from. I recently read a book from OECD called Eco-Innovation in Industry: Enabling Green Growth that provided some excellent thoughts on measuring the growth of the Green Economy. It gave the following indicators for possible KPIs for growth of the Green Economy.


Operating Performance Indicator (OPI) Management Performance Indicator (MPI) Environment Condition Indicator (ECI)
Raw material used per unit of product (kg/unit) Environmental costs or budget ($/year) Contaminant concentrations in ambient air (ug/m3)
Energy used annually per unit of product (MJ/ 1000/ product) Percentage of Environmental Targets Achieved (%) Frequency of photo chemical smogs (per year)
Energy Conserved (MJ) Number of employees trained (% trained/ to be trained %) Contaminant concentration in ground or surface water (mg/L)
Number of emergency events or unplanned shutdowns in a year Number of audit findings Change in groundwater level (m)
Hours of preventive maintenance (hours/ year) Number of audit findings addressed Number of coliform bacteria per liter of potable water
Average fuel consumption of vehicle fleet (l/100km) Time spent to correct audit findings (person hours) Contaminant concentration in surface soil (mg/kg)
Hazardous waste generated per unit of product (kg/unit) Time spent to respond to environmental incidents (person hours per year) Area of contaminated land rehabilitation (hectares/ year)
Emissions of specific pollutants to air (tonnes CO2 / year) Number of complaints from public or employees (per year) Population of a specific species of animals within a defined area (per m2)
Wastewater discharged per unit of product (1000 litres/ unit) Number of suppliers contacted for environmental management (per year) Number of hospital admissions for asthma during smog season (per year)
Hazardous waste eliminated by pollution prevention (kg/year) Cost of pollution prevention projects ($/year) Number of fish deaths in a specific watercourse (per year)
Number of days air emission limits were exceeded (days/ year) Number of management level staff with specific environmental responsibilities Employee blood lead levels (μg/ 100 ml)

In addition, the Economics and Statistics Administration of the US Department of Commerce did some interesting research on measuring the green economy. The report uses the North American Industry Classification System (NAICS codes) to identify green industry service and products. The selected NAICS codes selected by the study are included in the Annexures within the report.

These can be used by government portals to also understand trends in the green economy. These can also be used for developing Performance Metrics dashboards either within an organization or for a local, state of federal level government agency






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