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Environmental Resources, Shocks, and National Well-Being

Author

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  • Roumasset, James
  • Ravago, Majah-Leah
  • Jandoc, Karl
  • Arellano, Clarissa

Abstract

The contribution of the environmental-resource sector to national well-being is the sum of natural resource depletion and environmental degradation. Inasmuch as existing resource stocks are below efficient levels, better enforcement of existing laws as well as policies that incentivize sustainable use are needed. Similarly, progressive royalty assessment of mineral resources can incentivize exploration without transferring the bulk of resource rents to private interests. In the case of pollution, the key is to face firms with the full costs of their production, e.g. through emission taxes and/or cap and trade systems. Calculating total depletion and degradation (TDD) will facilitate the calculation of green national income (GNI), a more inclusive metric of national well-being. In the same way, simultaneous optimization of disaster management policies in the face of climate change can facilitate a further improvement in national well-being, this time measured as comprehensive national income (CNI).

Suggested Citation

  • Roumasset, James & Ravago, Majah-Leah & Jandoc, Karl & Arellano, Clarissa, 2016. "Environmental Resources, Shocks, and National Well-Being," MPRA Paper 87715, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:87715
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    File URL: https://mpra.ub.uni-muenchen.de/87715/1/MPRA_paper_87715.pdf
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    References listed on IDEAS

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    Cited by:

    1. Majah-Leah Ravago & James Roumasset, 2016. "The Public Economics of Electricity Policy with Philippine Applications," Working Papers 201613, University of Hawaii at Manoa, Department of Economics.
    2. Majah-Leah V. Ravago & James A. Roumasset, 2020. "COVID-19, Coal, and the Energy Transition in the Philippines," Department of Economics, Ateneo de Manila University, Working Paper Series 202009, Department of Economics, Ateneo de Manila University.

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    More about this item

    Keywords

    Well-being; risk; natural disaster; scenario-building; Philippines;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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