Enhancing labor productivity as a key strategy for fostering green economic growth and resource efficiency

Abstract

Amidst a time when uncontrolled economic growth has frequently harmed the environment, it is crucial to reassess our strategy toward economic progress. The necessity to tackle climate change, resource depletion, and environmental deterioration demands a profound transition towards ecologically sound and sustainable economic development. This study examines the crucial significance of labor productivity in promoting sustainable economic growth and the effective utilization of resources in Asia, Europe, and South America from 1990 to 2020. To accomplish this, we utilized the Data Envelopment Analysis (DEA) methodology to examine a range of input and output characteristics thoroughly. These parameters included labor productivity, renewable energy usage, material efficiency, Green GDP, carbon footprint, and water footprint. The results of our study demonstrate significant regional variations in the efficient utilization of labor and resources to promote sustainable economic development. The findings of the DEA model emphasize that countries with higher labor productivity are more capable of pursuing an environmentally benign and sustainable financial path. Moreover, our research demonstrates a substantial association between enhanced labor productivity and diminished carbon and water footprints. This highlights the importance of labor productivity as a fundamental element for maximizing resource efficiency. In addition, we propose policy suggestions that motivate and improve worker efficiency as a practical strategy to accomplish both economic growth and environmental sustainability.

Keywords

• Green economic growth
• Resource efficiency
• Labour productivity
• Environmental sustainability