Analyzing the impact of natural capital on socio- economic objectives under the framework of sustainable development goals

Abstract

Natural capital plays an essential role in achieving socio-economic objectives and is connected to the basic conditions for human survival. Here, we discuss the role played by natural capital in sustainable socio-economic objectives (SDG1, 3, 5, and 8) in 131 countries and territories during the period 2000–2018. In the long term, the increased dependence on natural capital can contribute to decent work and economic growth, but it has negative impacts on poverty reduction as well as the promotion of good health, well-being, and gender equality. The relationship between natural capital and each socio-economic objectives changes with different levels of socio-economic. In addition, the regression results of countries at different stages of development show heterogeneity. Unlike low-income countries, the dependence on natural capital reduces poverty rates in high-income countries, and is conducive to gender equality in middle-income countries. Governments should create incentives to protect and enhance natural wealth to prevent the depletion of natural capital or its unsustainable conversion into other forms of capital.