Genuine Saving as a Sustainability Indicator

Growth theory provides the intellectual underpinning for expanded national accounting and, through the measure of genuine saving, an indicator of when economies are on an unsustainable development path. This theory points in useful directions for c...

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Bibliographic Details
Main Author:	Hamilton, Kirk
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	SUSTAINABLE DEVELOPMENT SAVINGS NATIONAL ACCOUNTS MONETARY POLICY FISCAL POLICY ABATEMENT COSTS ASSETS CARBON CLOSED ECONOMY COAL CONSUMERS CURRENT EXPENDITURES DAMAGES DOMESTIC SAVINGS ECONOMIC GROWTH ECONOMIC THEORY ECONOMISTS ELASTICITY ELASTICITY OF SUBSTITUTION EMISSIONS EMPIRICAL EVIDENCE ENVIRONMENTAL ECONOMICS ENVIRONMENTAL ISSUES ENVIRONMENTAL POLICIES ENVIRONMENTAL QUALITY EXPENDITURES EXPLOITATION EXPORTS FISCAL POLICIES FISCAL POLICY FOREIGN ASSETS GDP GNP GROWTH THEORY HUMAN CAPITAL IMPORTS INCOME INCOME GROUPS INTERMEDIATE INPUTS INTERNATIONAL TRADE MACROECONOMIC POLICIES MACROECONOMIC POLICY MARGINAL COST MARGINAL PROPENSITY TO CONSUME MIDDLE INCOME COUNTRIES NATIONAL ACCOUNTING NATURAL CAPITAL NATURAL RESOURCES NET SAVINGS OIL POLLUTION POLLUTION ABATEMENT POLLUTION CONTROL PRESENT VALUE PRODUCTION FUNCTION PRODUCTIVE ASSETS PROPERTY RIGHTS RENEWABLE RESOURCES RESOURCE USE SAVINGS BEHAVIOUR SAVINGS RATES SHADOW PRICES SOCIAL COSTS TIMBER TRANSPORT WEALTH ABATEMENT COSTS
Online Access:	http://documents.worldbank.org/curated/en/2000/10/1570695/genuine-saving-sustainability-indicator http://hdl.handle.net/10986/18301

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Summary:	Growth theory provides the intellectual underpinning for expanded national accounting and, through the measure of genuine saving, an indicator of when economies are on an unsustainable development path. This theory points in useful directions for countries concerned with sustainable development. The genuine savings analysis raises an important set of policy questions that goes beyond the traditional concern with the macroeconomic and microeconomic determinants of savings efforts. The questions of rent capture, public investments of resource revenues, resource tenure policies, and the social costs of pollution emissions are equally germane in determining the overall level of saving, although it is clear that monetary and fiscal policy remain the big levers. This analysis also provides a practical way for natural resource and environmental issues to be discussed in the language that ministries of Finance understand. This may prove to be an important advantage as many resource-dependent economies struggle to achieve their development goals.

Genuine Saving as a Sustainability Indicator

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