Abstract
In Hartwick [1990] I presented a methodology and formulas for incorporating changes in values of natural resource stocks in an economy’s national accounts. The aim was to account for the depletion of stocks from extraction (e.g., oil), from “overuse” (e.g., fishing) and from degradation (e.g., pollution). Essential to the analysis was the assumption that (a) prices reflected true scarcity (perfect competition or optimal planning) (b) property rights were well defined and universal (this is related to (a) via the notion of market failure or departures from perfect competition) and (c) technological progress was, in possibly a statistical sense of averaging, correctly anticipated.
I am indebted to John Livernois, Ngo van Long, and Gerard Gaudet for helpful comments.
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© 1993 Physica-Verlag Heidelberg
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Hartwick, J.M. (1993). Notes on Economic Depreciation of Natural Resource Stocks and National Accounting. In: Franz, A., Stahmer, C. (eds) Approaches to Environmental Accounting. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-49977-7_9
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DOI: https://doi.org/10.1007/978-3-642-49977-7_9
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