Key Indicators for Improving the Resource Productivity in the Baltic States

Abstract

Growth of economics and population, as well as rising income and living standards, increase the global consumption of various materials, generating pressures on the natural resources and the environment. The unsustainable use of resources have led to climate change, environmental pollution and exhaustion of raw materials, which is why decoupling economic growth from environmental degradation as well as an efficient use of resources is one of the main objectives nowadays. The effectiveness with which the economy uses materials extracted from natural resources to generate economic value is described by resource productivity. Resource productivity is a problematic issue for the Baltic States as it is 1.5-3.0 times lower than the average resource productivity of all the EU. The paper analyses the tendencies of resource productivity in Estonia, Latvia and Lithuania, as well as the main factors that impact on it. The analysis includes 34 indicators related to national income and outlays for research and development, seeking to discover the factors that have the greatest influence on resource productivity. The research showed significant differences among countries, and, in turn, different means for increasing of the resource productivity should be applied. Latvia is the only country among three that has made progress in this area. Lithuania and, especially, Estonia should pay more attention to the effective use of outlays for RD, make strict action plans, provide the list of means, and regularly check the implementation as a means of seeking to improve the resource productivity.