EAMFP measures a country's ability to generate income from a given set of inputs, while accounting for the consumption of natural resources and production of undesirable environmental by-products. It corresponds to the share of pollution-adjusted output growth that is not explained by changes in the use of inputs (residual growth).
EAMFP growth therefore measures the residual growth in the joint production of both the desirable and the undesirable outputs that cannot be explained by changes in the consumption of factor inputs (including labour, produced capital, and natural capital). Therefore, for a given growth of input use, EAMFP increases when GDP increases or when pollution decreases.
Type of variable: Continuous