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Comments on Arrow et al., ‘Sustainability and the measurement of wealth’

Published online by Cambridge University Press:  30 May 2012

Kirk Hamilton
Kirk Hamilton
Affiliation:
Development Research Group, The World Bank, 1818 H St. NW, Washington DC 20433, USA. Tel: 1-202-473-2053. Email: khamilton@worldbank.org
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Extract

The Arrow et al. paper is a welcome addition to a large literature on the linkage between asset values and social welfare. This literature has its roots in the concern about ‘greening’ the national accounts, but the paper shows how expanding the asset boundary beyond produced and natural goods could increase our measures of income, saving and wealth enormously. I will comment in turn on the wealth accounts, investment accounts and the treatment of CO2 emissions, using selected World Bank figures as a basis for comparison.

Type
Commentary
Information
Environment and Development Economics , Volume 17 , Issue 3 , June 2012 , pp. 356 - 361
Copyright
Copyright © Cambridge University Press 2012

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