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Reconciling Twin Indicators of Sustainable Development: Dasgupta Review Reviewed and Extended

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  • Rintaro Yamaguchi

    (National Institute for Environmental Studies (NIES))

Abstract

The Economics of Biodiversity: The Dasgupta Review essentially recommends two indicators of sustainable development: the global ecological footprint that should be within the limits of nature’s capacity, and the change in real national inclusive wealth. Using the welfare economic theory of national accounting, and extending the framework of the Dasgupta Review, we reconcile the two indicators by embedding a country’s contribution to the global ecological footprint in real national inclusive wealth. We do so by regarding the $$\alpha$$ -efficiency of natural capital use as a proxy of knowledge capital, which is added to national wealth. Our empirical results show that, while the $$\alpha$$ -efficiency has improved significantly over decades, except in oil-producing countries, it still falls short of compensating for the erosion of national wealth.

Suggested Citation

  • Rintaro Yamaguchi, 2026. "Reconciling Twin Indicators of Sustainable Development: Dasgupta Review Reviewed and Extended," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 181(1), pages 1-19, January.
    • Handle: RePEc:spr:soinre:v:181:y:2026:i:1:d:10.1007_s11205-025-03775-8
    DOI: 10.1007/s11205-025-03775-8
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