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An integral component of any green growth strategy is a reliable set of measurement tools and indicators to evaluate the effectiveness of policies and to gauge the progress achieved in shifting economic activity towards a greener path. These tools and indicators must be based on internationally comparable data and integrated within a conceptual framework. It is necessary also to select indicators according to a specific set of criteria.
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The OECD conceptual framework for monitoring progress towards green growth focuses on the environmental performance of production and consumption, and on the key drivers of green growth, such as policy instruments and innovation. This chapter briefly describes the OECD conceptual framework and the general principles used to select relevant indicators to monitor progress towards green growth in agriculture. It also provides a synopsis of the proposed indicators.
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Interpretation and assessment of green growth indicators for agriculture need to take into account the socio-economic circumstances of individual countries. This chapter provides information on the economic context and key characteristics of agricultural growth, particularly with regard to productivity, trade and commodity prices.
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Tracking trends in decoupling inputs to production from economic growth is an important issue for monitoring progress towards green growth. Indicators included in this chapter attempt to capture the extent to which economic growth is becoming greener, that is, lowcarbon and resource-efficient. The indicators presented pertain to: i) carbon and energy productivity, which characterises, among other things, interactions with the climate system and the global carbon cycle as well as the environmental and economic efficiency with which energy resources are used in agricultural production; ii) resource productivity, which characterises the environmental and economic efficiency with which natural resources such as water and nutrients are used in production; and iii) environmentally adjusted total factor productivity in order to give a more complete picture of the productivity of an economy by accounting for inputs from natural resources and for the generation of pollution.
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Chapter 4 focuses on the group of indicators relating to the natural asset base and the environmental quality of life. It examines the role that availability and the quality of freshwater, biological diversity and ecosystems, and the productivity of land and soil resources play in the development of green growth in agriculture. Due to data and methodological issues, no indicator that captures the impact of the environment on people’s quality of life is proposed.
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The category of indicators included in this chapter aims to identify the effectiveness of policy in delivering green growth and the economic opportunities arising from such growth. They should also help to identify potential synergies and trade-offs among different policy objectives, and among green growth goals.