Total Factor Productivity (TFP)- What is it?

This article identifies environmental pollution as a result of unnecessary use of scarce resources or a substance released to the air, water, or land that could harm human health or the environment. It is proposed that instead of incurring cost to remedy an environmental disaster or to prevent pollution through investment in carbon intensive energy infrastructure, a more practical and cost effective approach is adopted. This approach requires ‘lean thinking’ that is premised on the identification and elimination of non-value added activities that consume valuable resources and emit substances that pollute the environment. By doing so, the environmental impact due to industrial growth can be curtailed and the cost of operations will be reduced as well. This will enable organizations to be more profitable and at the same time reduce the degree of pollution emitted into the environment. Both the industry as well as society will benefit from this exercise.