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Government investment in natural capital

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  • Ruggeri, Joe
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    Abstract

    This paper presents a new approach to the measurement of natural capital. A distinguishing feature of this approach is the use of investment criteria that are consistent with the main features of physical capital, thus maintaining consistency in the measurement of different types of capital. This new approach was applied to the expenditures of the federal government in Canada as recorded in the Public Accounts for fiscal year 2004-05. My results indicate that, in 2004-05, total investment in natural capital by the federal government amounted to 2.6% of net budgetary expenditures. Spending on physical capital, the only component that is currently included as investment in the National Accounts, represented only 5% of total investment in natural capital.

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    File URL: http://www.sciencedirect.com/science/article/B6VDY-4V3HMDP-2/2/650b8c67636757918d65c39a0cf20865
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    Bibliographic Info

    Article provided by Elsevier in its journal Ecological Economics.

    Volume (Year): 68 (2009)
    Issue (Month): 6 (April)
    Pages: 1723-1739

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    Handle: RePEc:eee:ecolec:v:68:y:2009:i:6:p:1723-1739

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    Web page: http://www.elsevier.com/locate/ecolecon

    Related research

    Keywords: Natural capital Government investment;

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    1. Boyd, James & Banzhaf, H. Spencer, 2006. "What Are Ecosystem Services?," Discussion Papers dp-06-02, Resources For the Future.
    2. Berkes, Fikret & Folke, Carl, 1992. "A systems perspective on the interrelations between natural, human-made and cultural capital," Ecological Economics, Elsevier, vol. 5(1), pages 1-8, March.
    3. Boyd, James W., 2006. "The Non-Market Benefits of Nature: What Should Be Counted in Green GDP?," Discussion Papers dp-06-24, Resources For the Future.
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