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Analysis of green net national product and genuine saving in Portugal, 1991 - 2005

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  • Mota, Rui Pedro
  • Domingos, Tiago
  • Martins, Victor

Abstract

The context of this paper is the measurement of welfare and weak sustainability, defined as non-declining utility, in dynamic economies, i.e., green, environmental or comprehensive accounting. We estimate the green net national product and genuine saving for Portugal 1991-2005, accounting for the disamenity of air pollution emissions, the depreciation of commercial forests - pine and eucalyptus -, the value of time (through technological progress), excluding the effect of business cycles and discussing the assumptions behind the usual terms included in the empirics of comprehensive accounting. For the accounting period considered we find that both GNNP and GS are positive, thereby indicating no sustainability problem in Portugal, although both GNNP and GS depict a trend towards unsustainability. Excluding technological progress there is a contradiction in the sustainability message: GS is negative after 2002, whereas GNNP is always positive, indicating that welfare increased.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13347.

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Date of creation: 20 Dec 2008
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Handle: RePEc:pra:mprapa:13347

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Keywords: Welfare measures; green accounting; technological progress; business cycles;

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  1. Asheim, G.B. & Buchholz, W. & Withagen, C.A.A.M., 2002. "The Hartwick Rule: Myths and Facts," Discussion Paper 2002-52, Tilburg University, Center for Economic Research.
  2. Asheim, Geir B., 2007. "Can NNP be used for welfare comparisons?," Environment and Development Economics, Cambridge University Press, vol. 12(01), pages 11-31, February.
  3. Hamilton, Kirk & Clemens, Michael, 1999. "Genuine Savings Rates in Developing Countries," World Bank Economic Review, World Bank Group, vol. 13(2), pages 333-56, May.
  4. Weitzman, Martin L, 1997. " Sustainability and Technical Progress," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 1-13, March.
  5. Vincent, Jeffrey R. & Panayotou, Theodore & Hartwick, John M., 1997. "Resource Depletion and Sustainability in Small Open Economies," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 274-286, July.
  6. Asheim,G.B. & Weitzman,M.L., 2001. "Does NNP growth indicate welfare improvement?," Memorandum 02/2001, Oslo University, Department of Economics.
  7. Ayres, Robert U. & Warr, Benjamin, 2005. "Accounting for growth: the role of physical work," Structural Change and Economic Dynamics, Elsevier, vol. 16(2), pages 181-209, June.
  8. Hamilton, Kirk & Atkinson, Giles, 1996. "Air pollution and green accounts," Energy Policy, Elsevier, vol. 24(7), pages 675-684, July.
  9. Marta-Pedroso, Cristina & Freitas, Helena & Domingos, Tiago, 2007. "Testing for the survey mode effect on contingent valuation data quality: A case study of web based versus in-person interviews," Ecological Economics, Elsevier, vol. 62(3-4), pages 388-398, May.
  10. Romina Boarini & Åsa Johansson & Marco Mira d'Ercole, 2006. "Alternative Measures of Well-Being," OECD Social, Employment and Migration Working Papers 33, OECD Publishing.
  11. Romina Boarini & Åsa Johansson & Marco Mira d'Ercole, 2006. "Alternative Measures of Well-Being," OECD Economics Department Working Papers 476, OECD Publishing.
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