Wealth Accounting, Exhaustible Resources and Social Welfare

The empirical literature on natural resource accounting uses methods which implicitly or explicitly entail measuring changes in total resource asset value when an exhaustible resource is depleted. In contrast, the growth theoretic literature on saving, social welfare and sustainable development is b...

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Main Authors:	Hamilton, Kirk, Ruta, Giovanni
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Sustainable Development Q010 Nonrenewable Resources and Conservation: Demand and Supply Q310 Environment and Development Environment and Trade Sustainability Environmental Accounting Environmental Equity Population Growth Q560
Online Access:	http://hdl.handle.net/10986/5818

id	okr-10986-5818
recordtype	oai_dc
spelling	okr-10986-58182021-04-23T14:02:23Z Wealth Accounting, Exhaustible Resources and Social Welfare Hamilton, Kirk Ruta, Giovanni Sustainable Development Q010 Nonrenewable Resources and Conservation: Demand and Supply Q310 Environment and Development Environment and Trade Sustainability Environmental Accounting Environmental Equity Population Growth Q560 The empirical literature on natural resource accounting uses methods which implicitly or explicitly entail measuring changes in total resource asset value when an exhaustible resource is depleted. In contrast, the growth theoretic literature on saving, social welfare and sustainable development is built upon a central finding, that the change in real wealth (as measured by net or 'genuine' saving) is proportional to the change in social welfare. We show that the change in total wealth exceeds the change in real wealth in optimal and non-optimal models of resource-extracting economies. This suggests that the change in social welfare is over-estimated when the change in total resource asset value is used as the measure of depletion. A simple empirical exercise, using World Bank data on 'adjusted net saving', reinforces the results from theory. 2012-03-30T07:34:42Z 2012-03-30T07:34:42Z 2009 Journal Article Environmental and Resource Economics 09246460 http://hdl.handle.net/10986/5818 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Sustainable Development Q010 Nonrenewable Resources and Conservation: Demand and Supply Q310 Environment and Development Environment and Trade Sustainability Environmental Accounting Environmental Equity Population Growth Q560
spellingShingle	Sustainable Development Q010 Nonrenewable Resources and Conservation: Demand and Supply Q310 Environment and Development Environment and Trade Sustainability Environmental Accounting Environmental Equity Population Growth Q560 Hamilton, Kirk Ruta, Giovanni Wealth Accounting, Exhaustible Resources and Social Welfare
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	The empirical literature on natural resource accounting uses methods which implicitly or explicitly entail measuring changes in total resource asset value when an exhaustible resource is depleted. In contrast, the growth theoretic literature on saving, social welfare and sustainable development is built upon a central finding, that the change in real wealth (as measured by net or 'genuine' saving) is proportional to the change in social welfare. We show that the change in total wealth exceeds the change in real wealth in optimal and non-optimal models of resource-extracting economies. This suggests that the change in social welfare is over-estimated when the change in total resource asset value is used as the measure of depletion. A simple empirical exercise, using World Bank data on 'adjusted net saving', reinforces the results from theory.
format	Journal Article
author	Hamilton, Kirk Ruta, Giovanni
author_facet	Hamilton, Kirk Ruta, Giovanni
author_sort	Hamilton, Kirk
title	Wealth Accounting, Exhaustible Resources and Social Welfare
title_short	Wealth Accounting, Exhaustible Resources and Social Welfare
title_full	Wealth Accounting, Exhaustible Resources and Social Welfare
title_fullStr	Wealth Accounting, Exhaustible Resources and Social Welfare
title_full_unstemmed	Wealth Accounting, Exhaustible Resources and Social Welfare
title_sort	wealth accounting, exhaustible resources and social welfare
publishDate	2012
url	http://hdl.handle.net/10986/5818
_version_	1764396424086159360

Wealth Accounting, Exhaustible Resources and Social Welfare

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