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Natural Capital and Wealth in the 21st Century

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  • Edward B. Barbier

    () (University of Wyoming)

Abstract

Abstract Extending the wealth accumulation model of Piketty and Zucman [2014] to include net depreciation in fossil fuels, minerals, and forests produces two key indicators: the net national saving rate adjusted for natural capital depreciation, and the ratio of this rate to long-run growth. These indicators are applied to eight rich economies over 1970–2013 and developing countries for 1979–2013. Whereas in developing economies capital accumulation has largely kept pace with rising natural capital depletion, in the rich countries adjusted net savings have fallen to converge with the rate of natural capital depreciation, suggesting less compensation by net increases in other capital.

Suggested Citation

  • Edward B. Barbier, 2017. "Natural Capital and Wealth in the 21st Century," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(3), pages 391-405, June.
  • Handle: RePEc:pal:easeco:v:43:y:2017:i:3:d:10.1057_s41302-016-0013-x
    DOI: 10.1057/s41302-016-0013-x
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    References listed on IDEAS

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    Cited by:

    1. Gasmi, Farid & Couvet, Denis & Recuero Virto, Laura, 2019. "The impact of renewable versus non-renewable natural capital on economic growth," TSE Working Papers 19-1058, Toulouse School of Economics (TSE).

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