Powering Progress: Toward a Better Understanding of Canada’s Green Economy

Despite Canada’s ambitious climate goals and the global transition toward more sustainable economic development models, empirical evidence on how the green transition affects Canada’s productivity growth is limited because of a lack of comprehensive data. This study fills this gap in two steps. First, it constructs a first-of-its-kind measure of green intensity at the detailed industry level by synthesizing multidimensional data, including information on green outputs and processes. Second, it investigates productivity dynamics by decomposing productivity growth using this newly developed green index.