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Measuring natural capital: towards accounts for the UK and a basis for improved decision-making

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  • Geoff Bright
  • Emily Connors
  • Joe Grice

Abstract

The paper describes the ongoing project begun by the UK Office for National Statistics and the Department for the Environment, Food and Rural Affairs in 2011 to compile comprehensive natural capital accounts for the UK. It describes the basis on which the accounts have been constructed, discusses key issues which have arisen, and presents the results to date. It also sets out how ‘restoration accounts’ for individual projects can not only facilitate conventional cost–benefit analysis but also add to relevant material for decision-makers. More widely, the paper describes how natural capital accounts can underpin well-based decision-making—for example, in implementation of the UK government’s new 25-year plan for the environment. In addition, by providing information on one of the ‘missing capitals’, such accounts can augment analysis of the behaviour of the economy generally.

Suggested Citation

  • Geoff Bright & Emily Connors & Joe Grice, 2019. "Measuring natural capital: towards accounts for the UK and a basis for improved decision-making," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 35(1), pages 88-108.
    • Handle: RePEc:oup:oxford:v:35:y:2019:i:1:p:88-108.
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    File URL: http://hdl.handle.net/10.1093/oxrep/gry022
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    References listed on IDEAS

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    1. Kenneth J. Arrow & Maureen L. Cropper & Christian Gollier & Ben Groom & Geoffrey M. Heal & Richard G. Newell & William D. Nordhaus & Robert S. Pindyck & William A. Pizer & Paul R. Portney & Thomas Ste, 2014. "Editor's Choice Should Governments Use a Declining Discount Rate in Project Analysis?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(2), pages 145-163.
    2. Fleurbaey, Marc & Blanchet, Didier, 2013. "Beyond GDP: Measuring Welfare and Assessing Sustainability," OUP Catalogue, Oxford University Press, number 9780199767199.
    3. Sterner, Thomas & Tol, Richard S. J. & Weitzman, Martin L. & Pizer, William A. & Portney, Paul R. & Arrow, Kenneth J. & Cropper, Maureen L. & Gollier, Christian & Groom, Ben & Heal, Geoffrey M. & Newe, 2014. "Should Governments Use a Declining Discount Rate in Project Analysis?," Scholarly Articles 33373349, Harvard University Department of Economics.
    4. Hamilton, Kirk & Hepburn, Cameron (ed.), 2017. "National Wealth: What is Missing, Why it Matters," OUP Catalogue, Oxford University Press, number 9780198803720.
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    Citations

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    Cited by:

    1. Fairbrass, A. & Mace, G. & Ekins, P. & Milligan, B., 2020. "The natural capital indicator framework (NCIF) for improved national natural capital reporting," Ecosystem Services, Elsevier, vol. 46(C).
    2. Warnell, Katherine J.D. & Russell, Marc & Rhodes, Charles & Bagstad, Kenneth J. & Olander, Lydia P. & Nowak, David J. & Poudel, Rajendra & Glynn, Pierre D. & Hass, Julie L. & Hirabayashi, Satoshi & In, 2020. "Testing ecosystem accounting in the United States: A case study for the Southeast," Ecosystem Services, Elsevier, vol. 43(C).
    3. Sikhululekile Ncube & Scott Arthur, 2021. "Influence of Blue-Green and Grey Infrastructure Combinations on Natural and Human-Derived Capital in Urban Drainage Planning," Sustainability, MDPI, vol. 13(5), pages 1-16, February.
    4. Dieter Helm, 2019. "Natural capital: assets, systems, and policies," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 35(1), pages 1-13.
    5. Hein, Lars & Remme, Roy P. & Schenau, Sjoerd & Bogaart, Patrick W. & Lof, Marjolein E. & Horlings, Edwin, 2020. "Ecosystem accounting in the Netherlands," Ecosystem Services, Elsevier, vol. 44(C).
    6. Moxey, Andrew & Smyth, Mary-Ann & Taylor, Emily & Williams, A. Prysor, 2021. "Barriers and opportunities facing the UK Peatland Code: A case-study of blended green finance," Land Use Policy, Elsevier, vol. 108(C).
    7. Seymour, Valentine & Willls, Betheney & Wilkin, Paul & Burt, Peter & Ikin, Ed & Stevenson, Philip C., 2022. "Incorporating citizen science to advance the Natural Capital approach," Ecosystem Services, Elsevier, vol. 54(C).
    8. Giles Atkinson & Paola Ovando, 2022. "Distributional Issues in Natural Capital Accounting: An Application to Land Ownership and Ecosystem Services in Scotland," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(2), pages 215-241, February.
    9. Ioannis Souliotis & Nikolaos Voulvoulis, 2021. "Natural Capital Accounting Informing Water Management Policies in Europe," Sustainability, MDPI, vol. 13(20), pages 1-24, October.

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