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Environmental Capital and Sustainable Income: Basic Concepts and Empirical Tests

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  • Thampapillai, Dodo J
  • Uhlin, Hans-Erik

Abstract

Building on the basic tenet of environmental accounting, a simple Keynesian framework is adapted for the determination of sustainable income. The adaptation involves the formulation of linear as well as nonlinear frameworks of income determination. These frameworks are empirically demonstrated for the U.S. economy by integrating standard macroeconomic data with macroenvironmental data. The analysis includes the derivation of sustainable income paths and the evaluation of wages and technology/management policies for jointly achieving full employment and sustainable income. The results indicate efficiency improvements in the utilization of environmental capital and possible convergence between the sustainable and actual income paths. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Thampapillai, Dodo J & Uhlin, Hans-Erik, 1997. "Environmental Capital and Sustainable Income: Basic Concepts and Empirical Tests," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(3), pages 379-394, May.
    • Handle: RePEc:oup:cambje:v:21:y:1997:i:3:p:379-94
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    Cited by:

    1. Kwabena Asomanin Anaman & Felix Agyei-Sasu, 2014. "The Economic Value of Environmental Capital Inputs Used to Produce the Gross Domestic Product in Ghana, 1993 to 2012," Research in World Economy, Research in World Economy, Sciedu Press, vol. 5(2), pages 74-92, September.
    2. Thampapillai, Dodo J. & Hansen, Jan & Bolat, Aigerim, 2014. "Resource rent taxes and sustainable development: A Mongolian case study," Energy Policy, Elsevier, vol. 71(C), pages 169-179.
    3. Jason A. Hubbart & Hodjat Ghadimi, 2023. "Regional Wealth Data Acquisition and Modeling: Innovations Needed for Advancement in Sustainable Wealth in Energy-Rich Regions," Challenges, MDPI, vol. 14(4), pages 1-17, December.
    4. Gerlagh, Reyer & Dellink, Rob & Hofkes, Marjan & Verbruggen, Harmen, 2002. "A measure of sustainable national income for the Netherlands," Ecological Economics, Elsevier, vol. 41(1), pages 157-174, April.
    5. Harris, Michael & Fraser, Iain, 2002. "Natural resource accounting in theory and practice: A critical assessment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(2), pages 1-54.
    6. Olatunji T. E, 2013. "Effectiveness of Budget Provisions to Promote Sustainable Forestry in Forest Reserves of Osun State, Nigeria," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(9), pages 1131-1139, September.
    7. Seeme Mallick, 2007. "Sustainable Income, Employment, and Income Distribution in Indonesia," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 579-596.
    8. Nam, Sang-yirl & Yang, Junsok, 2002. "Potential Impacts of Trade Liberalization in Korea's Motor Vehicle Industry," Conference papers 331037, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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