scholarly journals Economic growth – environment nexus: An analysis based on natural capital component of inclusive wealth

2021 ◽  
Vol 120 ◽  
pp. 106982
Author(s):  
Robi Kurniawan ◽  
Yogi Sugiawan ◽  
Shunsuke Managi
Keyword(s):  
Economic Growth ◽  
Natural Capital ◽  
Growth Environment ◽  
Inclusive Wealth

scholarly journals Economic Growth and Negative Externalities in India

2019 ◽  
Vol 15 (3) ◽  
pp. 143-157
Author(s):  
Dhananjaya K
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Natural Capital ◽  
Growth Models ◽  
Future Generation ◽  
Jel Classification ◽  
Negative Externalities ◽  
Growth Environment ◽  
Bidirectional Relationship ◽  
Increasing Temperature

Of late the world has realized that the growth models that believed in growth- environment tradeoff are not sustainable. In the pursuit of increasing their GDP, countries have ignored the negative externalities of growth, which would seriously threaten the survival of the future generation. Two kinds of damage are caused by unsustainable growth. Firstly, productive base, particularly, natural capital, like forest, minerals, energy, is depleting. Secondly, environmental pollution and climate change caused by excessive CO2 emissions are threatening human lives in terms of deteriorating health conditions and increasing temperature level (OECD, 2012). In the light of these concerns, sustainable development has become an important goal of nations. This study attempts to assess the extent of negative externalities in India and analyze the relationship between negative externalities and growth of GNI. The study finds that the economic growth of India is more sustainable as compared to all income categories countries. Further, the analysis detected a bidirectional relationship between negative externalities and GNI growth in the post-1990s. Keywords: Negative Externalities, Sustainable Development, and Genuine Saving Rate. JEL Classification: Q560

scholarly journals Measuring the value of groundwater and other forms of natural capital

2016 ◽  
Vol 113 (9) ◽  
pp. 2382-2387 ◽  
Author(s):  
Eli P. Fenichel ◽  
Joshua K. Abbott ◽  
Jude Bayham ◽  
Whitney Boone ◽  
Erin M. K. Haacker ◽  
...  
Keyword(s):  
Natural Capital ◽  
United Nations Environment Programme ◽  
High Plains ◽  
Aquifer Management ◽  
Capital Theory ◽  
Inclusive Wealth ◽  
Physical Changes ◽  
Nations Environment ◽  
Environment Programme ◽  
Capital Value

Valuing natural capital is fundamental to measuring sustainability. The United Nations Environment Programme, World Bank, and other agencies have called for inclusion of the value of natural capital in sustainability metrics, such as inclusive wealth. Much has been written about the importance of natural capital, but consistent, rigorous valuation approaches compatible with the pricing of traditional forms of capital have remained elusive. We present a guiding quantitative framework enabling natural capital valuation that is fully consistent with capital theory, accounts for biophysical and economic feedbacks, and can guide interdisciplinary efforts to measure sustainability. We illustrate this framework with an application to groundwater in the Kansas High Plains Aquifer, a rapidly depleting asset supporting significant food production. We develop a 10-y time series (1996−2005) of natural capital asset prices that accounts for technological, institutional, and physical changes. Kansas lost approximately $110 million per year (2005 US dollars) of capital value through groundwater withdrawal and changes in aquifer management during the decade spanning 1996–2005. This annual loss in wealth is approximately equal to the state’s 2005 budget surplus, and is substantially more than investments in schools over this period. Furthermore, real investment in agricultural capital also declined over this period. Although Kansas’ depletion of water wealth is substantial, it may be tractably managed through careful groundwater management and compensating investments in other natural and traditional assets. Measurement of natural capital value is required to inform management and ongoing investments in natural assets.

scholarly journals The Impact of Renewable Versus Non-renewable Natural Capital on Economic Growth

2020 ◽  
Vol 77 (2) ◽  
pp. 271-333
Author(s):  
Farid Gasmi ◽  
Laura Recuero Virto ◽  
Denis Couvet
Keyword(s):  
Economic Growth ◽  
Natural Capital ◽  
The Impact

Green accounting: from theory to practice

2000 ◽  
Vol 5 (1) ◽  
pp. 13-24 ◽  
Author(s):  
JEFFREY R. VINCENT
Keyword(s):  
Economic Growth ◽  
Developing Country ◽  
Natural Capital ◽  
National Income ◽  
Theoretical Work ◽  
Substantial Portion ◽  
Green Accounting ◽  
Theory To Practice ◽  
Rapid Economic Growth ◽  
The World

A decade has passed since Wasting Assets, a study of Indonesia by Robert Repetto and colleagues at the World Resources Institute, drew widespread attention to the potential divergence between gross and net measures of national income. This was by no means the first ‘green accounting’ study. Martin Weitzman, John Hartwick, and Partha Dasgupta and Geoffrey Heal had all conducted seminal theoretical work in the 1970s. But the World Resources Institute study demonstrated that data were adequate even in a developing country to estimate adjustments for the depletion of some important forms of natural capital and that the adjustments could be large relative to conventional, gross measures of national product and investment. The adjusted, net measures suggested that a substantial portion of Indonesia's rapid economic growth during the 1970s and 1980s was simply the unsustainable ‘cashing in’ of the country's natural wealth.

scholarly journals Sustainability Prediction Model for Capital City Relocation in Indonesia Based on Inclusive Wealth and System Dynamics

2020 ◽  
Vol 12 (10) ◽  
pp. 4336 ◽  
Author(s):  
Takuya Shimamura ◽  
Takeshi Mizunoya
Keyword(s):  
System Dynamics ◽  
Negative Impact ◽  
Natural Capital ◽  
Capital City ◽  
Health Capital ◽  
Inclusive Wealth ◽  
East Kalimantan ◽  
Education And Health ◽  
Produced Capital ◽  
The Impact

Based on inclusive wealth (IW), this paper evaluates the impact and sustainability of the Indonesian government’s decision to relocate the capital city from Jakarta to East Kalimantan in terms of economic, human, and environmental aspects. This paper develops an integrated prediction simulation model based on IW and system dynamics and sets three scenarios, depending on the expected population recovery in Jakarta and the increased immigration into the new capital city (NCC) from the nearby areas after the public sector relocates. The most reliable scenario projects benefit of USD 169 billion in IW in 2050, equivalent to 2.41% of the expected cumulative real gross domestic product (GDP) growth in Indonesia from 2021 to 2050. Regarding the sustainability of the relocation, the current investment plans are not sustainable, largely because of the negative impact on human capital, comprising the education and health capital caused by the income gap between Jakarta and the NCC, and due to depreciation of produced capital. This study makes a significant contribution to the integrated evaluation of capital city relocations for Indonesia and beyond, because no previous study of such relocations combines produced, human, and natural capital. This is the first policy evaluation to include the impact of migration on IW, which plays an important role in IW literature, because population is a key model factor.

Green national accounting: the case of Chile's mining sector

2002 ◽  
Vol 7 (2) ◽  
pp. 215-239 ◽  
Author(s):  
Eugenio Figueroa ◽  
Enrique Calfucura ◽  
Javier Nuñez
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Natural Capital ◽  
Significant Part ◽  
National Accounts ◽  
Mining Sector ◽  
Empirical Results ◽  
Income Measure ◽  
The One ◽  
Economic Income

This article uses the welfare foundations for the usual net domestic product (NDP) income measure of the traditional National Accounts System (NAS) provided by Weitzman (1976, 2000), and the propositions of Hartwick (1993) and Hamilton (1994a) to correct this measure in order to obtain a green (sustainable) measure of economic income. It estimates green measures of the economic income of Chile's mining sector for the period 1977–1996. Different methodologies regarding the valuation of mining resources are employed, and exploration expenditures in the mining sector are included to empirically estimate the green measures of income. The results clearly show that the usual income measures of the traditional NAS overestimated the economic income generated by the Chilean mining sector during the period by 20–40 per cent, and its rate of growth by 3–20 per cent. Moreover, this overestimation has increased in recent years. These empirical results are remarkably similar when different methodologies are used to calculate green measures of the mining sector's economic income. The empirical evidence produced in this work, together with the one provided by other studies, leads to the conclusion that Chile's outstanding recent economic growth has not delivered the amount of economic income recorded by its NAS, since a significant part of it corresponded to depreciation of the country's natural capital.

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