IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-319-23228-7_13.html
   My bibliography  Save this book chapter

Accounting for Natural Capital in Productivity of the Mining and Oil and Gas Sector

In: Productivity and Efficiency Analysis

Author

Listed:
  • Pat Adams

    (Statistics Canada)

  • Weimin Wang

    (Statistics Canada)

Abstract

This paper presents a growth accounting framework in which subsoil mineral and energy resources are recognized as natural capital input into the production process in two ways. Firstly, the income attributable to subsoil resources, or resource rent, is estimated as a surplus value after all extraction costs and normal returns on produced capital have been accounted for. The value of a resource reserve is then estimated as the present value of the future resource rents generated from the efficient extraction of the reserve. Secondly, with extraction as the observed service flows of natural capital, multifactor productivity growth and sources of economic growth can be reassessed by updating income shares of all inputs and then by estimating the contribution to growth coming from changes in the value of natural capital input. The empirical results on the Canadian oil and gas extraction show that, adding natural capital increases the annual multifactor productivity growth in the oil and gas sector from −2.2 to −1.5 % over the 1981–2009 period. During the same period, the annual real value-added growth in this industry was 2.3 %, of which about 0.3 percentage points or 15 % comes from natural capital.

Suggested Citation

  • Pat Adams & Weimin Wang, 2016. "Accounting for Natural Capital in Productivity of the Mining and Oil and Gas Sector," Springer Proceedings in Business and Economics, in: William H. Greene & Lynda Khalaf & Robin Sickles & Michael Veall & Marcel-Cristian Voia (ed.), Productivity and Efficiency Analysis, edition 1, chapter 0, pages 211-232, Springer.
  • Handle: RePEc:spr:prbchp:978-3-319-23228-7_13
    DOI: 10.1007/978-3-319-23228-7_13
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xixi Li & Jiajun Yang & Ning Zeng, 2024. "Natural resource rent and inclusive finance: an institutional perspective," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-29, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-3-319-23228-7_13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.