3 February 2021
A landmark UK government report has called for a thorough overhaul of economic methods for valuing natural assets, arguing among other things that gross domestic product is a short-term metric that allows for the potentially catastrophic exploitation of nature.
The 600-page report, by Cambridge University economist Professor Partha Dasgupta, argues governments should adopt an “inclusive” concept of wealth that systematically assigns a monetary value to natural assets and biodiversity, through what he calls “natural capital accounting”.
Dasgupta said measures like GDP could “mislead badly” because they emphasised the value of annual production without taking any account of the longer-term depletion of natural assets and destruction of biodiversity they cause. But he said this depletion and destruction would have severe long-term economic impacts.
LONDON (AP) A report commissioned by the British government is urging a radical transformation in the way that countries around the world assess the state of their economies by elevating the natural world as a key element in their economic planning.
The review of the economics of biodiversity by Professor Partha Dasgupta concludes that nature needs to become as valued as traditional gauges of economic wealth such as profits in the future.
In the 600-page review that was commissioned in 2019 by Britain s Treasury, the University of Cambridge economist warned that current economic growth and prosperity have “come at a devastating cost to nature. He said declines in biodiversity and the environment’s ability to provide food, clean water and air are “fueling extreme risk and uncertainty for our economies and well-being.
UK report urges need for nature to be at heart of economics
by Pan Pylas, The Associated Press
Posted Feb 2, 2021 7:52 am EDT
Last Updated Feb 2, 2021 at 7:58 am EDT
LONDON A report commissioned by the British government is urging a radical transformation in the way that countries around the world assess the state of their economies by elevating the natural world as a key element in their economic planning.
The review of the economics of biodiversity by Professor Partha Dasgupta concludes that nature needs to become as valued as traditional gauges of economic wealth such as profits in the future.
In the 600-page review that was commissioned in 2019 by Britain’s Treasury, the University of Cambridge economist warned that current economic growth and prosperity have “come at a devastating cost to nature.” He said declines in biodiversity and the environment’s ability to provide food, clean water and air are “fueling extreme risk and uncertainty for our economies and we
Prof. Partha Dasgupta. (Niccolò Caranti, CC BY-SA 3.0, Wikimedia Commons)
“Nature is more than a mere economic good,” he said. “Nature nurtures and nourishes us, so we will think of assets as durable entities that not only have use value, but may also have intrinsic worth.”
Dasgupta called on the world to ensure demands on nature do not exceed sustainable supplies, by changing food production and consumption, investing in natural solutions such as restoring forests and protecting natural habitats. He said coordinated action now would in the long-run be less costly and would also help tackle other issues such as climate change and poverty.
Nature should be at the heart of economic planning, says U.K. report
A report commissioned by the British government urges policymakers to stop measuring prosperity only in terms of gross domestic product and elevate nature and biodiversity as key in economic planning.
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The Associated Press ·
Posted: Feb 02, 2021 9:58 AM ET | Last Updated: February 2
Plastic waste is seen on the shore of a beach widened as a consequence of a severe drought, in the Argentine city of Rosario last August. Rosario sits on the banks of the Parana River Delta, one of the largest and most biodiverse in the world.(Marcelo Manera/AFP via Getty Images)