Linking Wealth and Productivity of Natural Capital for 140 Countries Between 1990 and 2014

Robi Kurniawan () and Shunsuke Managi
Additional contact information
Robi Kurniawan: Tohoku University

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2019, vol. 141, issue 1, No 17, 443-462

Abstract: Abstract This study explores the relationship between inclusive wealth, economic growth, and productivity of natural capital (including forestry, fishery, fossil energy reserves and minerals) for 140 countries between 1990 and 2014. For this objective, a Malmquist productivity index is developed, and regression analysis is performed. The results are threefold. First, we found that natural capital deterioration constituted the main driving force of declining wealth per capita following fossil fuel extraction. Second, the adjustment to a conventional productivity growth measure depends on GDP growth and an endowment growth shift of natural capital relative to other input factors. Third, we also found that the initial phase of GDP growth was accompanied by slower natural capital utilization followed by a phase of deterioration as these countries continue to develop economically. With further economic development, enhanced technology and effective natural resources utilization limit the material basis and result in reduced natural capital extraction. These results imply that natural capital extraction management for a broader income level can be implemented for sustainability in both the short and long term.

Keywords: Wealth; Productivity; Natural capital; Method of moment (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://link.springer.com/10.1007/s11205-017-1833-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:soinre:v:141:y:2019:i:1:d:10.1007_s11205-017-1833-8

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11135

DOI: 10.1007/s11205-017-1833-8

Access Statistics for this article

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement is currently edited by Filomena Maggino

More articles in Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().