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Depreciación del Capital Natural, Ingreso y Crecimiento Sostenible: Lecciones de la Experiencia Chilena

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  • Eugenio Figueroa B.
  • Enrique Calfucura T.

Abstract

The optimal exploitation of the natural resource base is crucial to attain maximum social welfare, especially in developing countries whose economies are highly dependent on such resources. This paper presents a simple model to correct the Gross Domestic Product (GDP) to obtain a measure of economic income, by subtracting from the Net National Product (NNP) the depreciation of natural capital. Corrected measures of the economic income for the period 1985-1997 are presented, taking into consideration mining and fishing resources and air contamination. The results show that approximately 3% of Chile’s economic income correspond to depreciation of its natural resources plus the cost of atmospheric pollution. In addition, genuine measures of saving are calculated. The results lead to the conclusion that economic growth was sustainable during the period 1985-1997. Important policy implications are obtained for a better management of natural resources in the future.

Suggested Citation

  • Eugenio Figueroa B. & Enrique Calfucura T., 2002. "Depreciación del Capital Natural, Ingreso y Crecimiento Sostenible: Lecciones de la Experiencia Chilena," Working Papers Central Bank of Chile 138, Central Bank of Chile.
  • Handle: RePEc:chb:bcchwp:138
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    1. Martin L. Weitzman, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, Oxford University Press, vol. 90(1), pages 156-162.
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    6. Asheim, Geir B, 1994. " Net National Product as an Indicator of Sustainability," Scandinavian Journal of Economics, Wiley Blackwell, vol. 96(2), pages 257-265.
    7. Solow, Robert M, 1986. " On the Intergenerational Allocation of Natural Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(1), pages 141-149.
    8. Figueroa, Eugenio & Calfucura, Enrique & Nuñez, Javier, 2002. "Green national accounting: the case of Chile's mining sector," Environment and Development Economics, Cambridge University Press, vol. 7(2), pages 215-239, May.
    9. Martin L. Weitzman, 1997. "Sustainability and Technical Progress," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 1-13, March.
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    11. Raúl O'Ryan & Sebastian Miller & Carlos J. de Miguel, 2001. "Environmental Taxes, Inefficient Subsidies and Income Distribution in Chile: A CGE framework," Documentos de Trabajo 98, Centro de Economía Aplicada, Universidad de Chile.
    12. Vincent, Jeffery, 1996. "Resource Depletion And Economic Sustainability In Malaysia," Harvard Institute for International Development (HIID) Papers 294087, Harvard University, Kennedy School of Government.
    13. Pearce, David W. & Atkinson, Giles D., 1993. "Capital theory and the measurement of sustainable development: an indicator of "weak" sustainability," Ecological Economics, Elsevier, vol. 8(2), pages 103-108, October.
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    Cited by:

    1. Josué Pérez Toledo, 2003. "The Chilean Economy’s Capital Stock and Allocation by Sectors," Working Papers Central Bank of Chile 233, Central Bank of Chile.
    2. Ricardo Ffrench-Davis & Diego Vivanco, 2016. "Depreciación del Capital Físico, Inversión Neta y Producto Interno Neto," Working Papers wp425, University of Chile, Department of Economics.

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