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Conventional and Green Measures of Income and Product

In: The World Economy, Population Growth, and the Global Ecosystem

Author

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  • Harland Wm. Whitmore

Abstract

The value added by a sector in terms of market transactions is measured on the “product-originating” side by the value of the sector’s production of marketable goods minus the sector’s purchases of intermediate goods and services from other sectors. The value of the sector’s production of marketable goods includes its sales to other sectors plus the changes in its inventories of marketable intermediate and final goods. VA-M is measured on the “income-originating” side by the factor and nonfactor costs of producing its marketable product. Income originating in the sector includes the wages, interest, depreciation, and profits generated by the sector’s production of marketable goods.

Suggested Citation

  • Harland Wm. Whitmore, 2007. "Conventional and Green Measures of Income and Product," Palgrave Macmillan Books, in: The World Economy, Population Growth, and the Global Ecosystem, chapter 11, pages 179-205, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-60730-9_11
    DOI: 10.1057/9780230607309_11
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