I am currently working with Value Added at current price per industry per country per year (VALU variable available on OECD stats) and I'm trying to use the Value Added for all the European Countries (27) for the period between 2008-2018 as one variable in a dataset to do regressions (CO2 per industry per country per year on Value added per industry per country per year) and draw insights. I'm particulary interested into knowing if there is a greenifications of the industries (by the decreasing of CO2 gases per industry) and for which industry in terms of value added ?
The data concerning the value added per industry can be found here : https://stats.oecd.org/Index.aspx?DataSetCode=STANI4_2020
The data concerning the CO2 can be found here : https://stats.oecd.org/Index.aspx?DataSetCode=AEA
The Value Added is either epxressed in current prices (VALU variable), in volumes (VALK variable) or in deflator related variable (VALP).
My question is actually, how can I use the value added if I want to be able to make cross country comparisons knowing that these variables are expressed in the country currency (for example, in 2016 Czech Republic has Czech Koruna while Germany has Euros). I assume I have to :
- Convert them to a unique currency (in my case Euros seems logical, therefore looking for exchange rates per year per country)
- Deflate them (CPI or PPI or ?)
Is this correct ? How to know which deflator (in which currency) should I use and how should I use it ? And which year I should use if would like to deflate ?
Thank you very much