Resource productivity
Resource productivity is the amount of economic output, commonly gross domestic product, generated per unit of materials consumed. It compares value creation with domestic material consumption and indicates whether an economy is using natural resources more efficiently, while remaining distinct from an absolute measure of total material use.
In simple terms
Resource productivity assesses how efficiently an economy uses natural resources to produce goods and services. It is calculated by dividing the GDP by the amount of materials consumed domestically, such as biomass, metal ores, and fossil fuels. Higher resource productivity indicates that an economy is generating more wealth with fewer resources. Value retention describes a related way of preserving usefulness within material systems.
Why it matters
Resource productivity is important because it helps track the decoupling of economic growth from environmental impacts. It complements value retention and design for durability by showing whether an economy creates more value from the materials it consumes. Improving it can reduce reliance on extraction, waste, and environmental degradation while supporting prosperity.
Example
If a country has a GDP of €1 trillion and consumes 500 million tons of materials annually, its resource productivity would be €2,000 per ton. Domestic material consumption supplies the material-use denominator, allowing the metric to compare efficiency across countries or track progress over time.
How it differs
Value retention
Material flows refer to the physical movement of natural resources through an economy, including extraction, imports, exports, and waste. Resource productivity, on the other hand, measures the economic output generated per unit of material consumed, focusing on the efficiency of resource use.
References
Current status
- As of
- Issuer
- ec.europa.eu
- Instrument or version
- Material flows and resource productivity - Environment - Eurostat
- Status
- This entry reflects the cited authoritative sources on the stated date. Check the issuer for later amendments, replacements, or implementation guidance.
Applicability: Applicability depends on the source's stated scope, edition, jurisdiction, eligibility rules, and implementation requirements; this dictionary entry does not determine whether a particular organization, activity, or transaction is covered.