Depletion Of Natural Capital Research Articles

Sustainable matrix beyond GDP: investment for inclusive growth

Measuring a country’s sustainable development by its gross domestic product (GDP) is insufficient to capture the loss of capital that determines future human welfare. To address this, we propose the inclusive wealth index, which integrates biophysical quantities and monetary values of natural, human, and produced capital. We analyzed the level of Inclusive Wealth in 163 countries over the past 30 years to assess sustainable development goals (SDGs) going beyond GDP. Global wealth has suffered significant losses in natural capital, with the biased accumulation of capital assets leading to unsustainable and unequal development. In low-income countries, soaring population levels and biased capital investments exacerbate the depletion of natural capital. Our results underscore the critical role of natural capital and inclusive capital management in sustainable development. Policymakers can use this information to make capital investments in their economies and promote recovery from COVID-19 that aligns with the SDGs, the Paris Climate Agreement, and initiatives beyond GDP.

Exploring the nexus between competition and the sustainable development goals in OECD countries

AbstractIn recent years, the OECD has been embroiled in discussions on the role of competition law in achieving the sustainable development goals (SDGs). However, it is crucial to understand whether the SDGs and competition work in harmony or are at odds before devising the best strategies for tackling sustainability challenges in competition laws and policies. For this purpose, this paper aims to empirically explore the interplay between sustainability and competition to fill the gap between economic theory and observed data through a study of a panel of 18 OECD countries from 2000 to 2019. The non‐declining inclusive wealth approach serves as the foundation for our model to evaluate sustainability. The SDG Index, which incorporates the socio‐economic and environmental aspects of sustainability, is used as a gauge of the SDGs' achievement, while the Index of Economic Freedom is used as a proxy for competition. The results of the feasible generalized least squares and panel‐corrected standard errors (PCSE) methods reveal that competition has no effect on the SDGs. Our empirical findings also show that the achievement of the SDGs is positively impacted by per capita gross national income and negatively impacted by population growth. The PCSE method's results indicate that the SDGs are not significantly affected by natural capital depletion, as measured by natural resource rents. Besides, the panel causality analysis confirms the existence of a causal relationship between the SDGs and competition. Our empirical results have two implications. First, they show that competition laws are still far from being an effective tool capable of achieving the SDGs. Second, they drive the competition authorities of OECD countries to devote greater efforts to sustainability‐related issues in the enforcement of competition law.

A new approach to assessing natural capital consumption inequities from a nonlinear perspective

The rate of decline in ecosystem services has been exacerbated by inefficient and inequitable natural resource use and management. This study analyzes the natural capital stock and outflow in the Arid and Semi-Arid Northern Region of China (ASRNC) from 2000 to 2020. The Gini coefficient and coefficient of variation are used in the equity assessment of natural capital consumption. Over-appropriation of natural capital is a prerequisite for the inequitable distribution of natural resources, and all variables were accounted for through a geographic probe. Since most of the variables in this study have a nonlinear relationship, an in-depth analysis was conducted using NARDL. The results show that (1) natural capital flow occupancy generally shows an upward and downward trend and peaks in 2015. Natural capital stock occupancy was on a linear upward trend over the study period, rising from 14.580hm2/cap to 18.272hm2/cap. Depletion of natural capital is increasing and construction land has become the land type that leads to deep footprint changes (2) A city's consumption of natural capital matches its ecological carrying capacity to contribute to economic growth. However, the Gini coefficient for the depth of the ecological footprint from 2000 to 2020 is on a fluctuating upward trend. It reached its maximum in 2020 (1.457), indicating that the inequitable use of natural capital stock is increasing. (3) In the long run, population density and urbanization rate have different adverse effects on utilizing natural capital stock. In addition, the equity of planted forest area on natural capital use is heterogeneous in the long and short term. There is a negative effect of planted forest area on natural capital stock under long-term development. The study helps to judge the equity of regional consumption of natural capital and provides a scientific basis for the harmonious development between socio-economic systems and ecosystems.

Development of territorial communities: aspects of natural capital conservation and budget financing

The development of efficient local governance and establishment of comfortable conditions for the living activity are the major strategic tasks of the public governance and authorities’ decentralization system modernization that is currently underway in Ukraine. The complicated socio-environmental and economic situation faced by Ukraine due to the deployment of military and political events, the collapse of the national currency, the deformation of industrial infrastructure, the depletion of natural capital, the exhaustion of natural resources, the spread of coronavirus infection COVID-19, and other destabilizing factors constitutes an incredibly high threat to the socio-political and economic security of the state as a whole and of each territorial community (TC). In this perspective, each element of the complex national economy system is important and should be translated into the principles of intellectualization in a strategic perspective. Today, the economic systems of both the state and the TCs are largely supported by international organizations – mainly through the provision of international loans and grants. The harmonization of national legislation on the preservation and reproduction of natural capital with European directives is the priority area of the foreign policy of Ukraine. Cooperation with international organizations sets a number of requirements for Ukraine, including the transparency of financial flows and natural capital accounting. Clear regulation of accounting, storage, and reproduction of natural capital is an urgent task of the public administration system. Taking into account the fact that climate security is a global problem, adaptation of national standards to European directives will make it possible to unify the information support of public finances and form a strategy for the development of natural capital. The main factors of economic efficiency in the Republic of Poland and Ukraine are compared. The research verifies the regression relationships between budget funding of territorial communities and the population of these territorial communities and provides conclusions about the efficiency of TCs’ funding in Ukraine.

"Dark under the lamp": ecological equity of urban agglomeration from the perspective of natural capital in China.

Although equity is an important aspect of sustainable development, equity research has mainly focused on income and economics while paying insufficient attention to ecological equity. Therefore, aiming to improve our understanding of equity and promote environmental protection, this study introduced natural capital to measure regional ecological equity and analyze its driving factors. Based on ecological footprint (EF) and ecosystem service value (ESV), we constructed evaluation indexes and drew an "ecological Lorentz curve bundle" to analyze ecological equity in the Jing-Jin-Ji urban agglomeration (JUA) from 2009 to 2020. The results showed that economic development in JUA resulted in the severe depletion of natural capital, especially biological and energy resources, and the supply and demand of natural capital was in a low-level equilibrium state. Based on JUA's population base, natural capital utilization in the region had exceeded ecological equity, and the Gini coefficient of EF based on population was close to the international warning value of 0.4. Although economic development in JUA has promoted economic equity, it has also led to environmental inequity. Large cities such as Beijing and Tianjin, as well as industrial cities such as Tangshan and Handan, have had the greatest effects on ecological equity. Moreover, the excessive consumption of natural capital stock and energy-dependent industrial structures threaten ecological equity.

Subnational administrative capabilities shape sustainable development in Africa

Rapid population and economic growth in Africa are raising concerns over the sustainability of its economic development. Current research has assessed the sustainability of African development at the national level but has neglected subnational sustainability disparities driven by evidence of inequalities in investment rates and resource exploitation within various countries. Thus, this study uses the inclusive wealth (IW) accounting framework to assess the sustainability performance of 716 subnational African provinces. This framework consists of valuing the components of IW per capita (IWpc), namely, natural, manufactured, and human capital, between 2012 and 2018. Estimates reveal that provincial IWpc in this period grew by 1% per year on average. This growth is embodied by investment in human and produced capital, which offsets natural capital depletion. Although half of the provinces studied experience synergies between income and wealth growth, there are tradeoffs between these variables, indicating challenges in joining short- and long-term development. These tradeoffs are caused by inabilities to associate income and natural capital growth. Furthermore, although spatial inequalities in wealth levels, variations, and compositions are strongly defined by national boundaries, they are partially defined by the locations of capital cities within countries. Overall, the results show the potential for planning subnational need-based interventions to create sustainable development, the benefits of which extend nationally.

Natural Capital, Institutional Quality and SDG Progress in Emerging Market and Developing Economies

Whether environmental impacts, natural capital depreciation, and effective governance have impacted progress in emerging market and developing economies (EMDEs) to achieving the 17 Sustainable Development Goals (SDGs) of the UN Agenda 2030 has become a significant policy topic. We determine estimates of the changes in net welfare that indicate progress over 2000–2019 in terms of meeting the 17 SDGs for 99 EMDEs. We compare these estimates with the environmental impacts associated with SDGs 11–15, natural resource depletion as a share of national income, and average institutional quality. Net SDG welfare gains over 2000–2019 were often accompanied by adverse environmental impacts, natural capital depletion, and poor-quality institutions. This is especially the case for low- and lower-middle-income economies. Higher net SDG welfare gains are correlated with reduced losses associated with SDGS 11–15, and larger welfare gains from attaining SDG 1 No Poverty are associated with better governance. These results suggest that long-term progress towards the SDGs in EMDEs hinges on improved management of natural capital and the environment, as well as more effective governance. Three policies can be implemented to achieve these objectives without additional financing or imposing fiscal burdens: fossil fuel subsidy swaps, tropical carbon taxes, and improved management and distribution of resource revenues.

ІНКЛЮЗИВНА «ЗЕЛЕНА» ЕКОНОМІКА

The urgency of the problem lies in the considered process of transformation of the modern economy into the newest direction of the "green" economy. It is necessary to take into account the peculiarities and modern conditions of the development of social and economic systems of the countries of the world. To study the methodological aspects of creating "green" finance and the principles of the future greening of the financial system as part of the sustainable development of the world economy. One of the most pressing regular issues is the acceptability of using certain energy sources and extracting the corresponding resources. The current crisis shows that not all countries are fully ready to transition to the new economic reality. By abandoning traditional sources of energy in favor of alternative ones, they have slowed down the development of their countries and endangered their well-being in an age when resources are the main element of survival. A sharp transition to a "green" economy seems inexpedient due to the unstable situation in world geopolitics. What is needed is not a reckless desire for the accelerated growth of the "green" economy, accompanied by ecological slogans, even for the sake of preserving the climate, but a thoughtful, differentiated and phased approach to its development that takes into account the production-technological, socio-economic and naturalgeographic features of regions and states. The prevailing economic system is imperfect, as evidenced by crises and failures of the market mechanism, and is inherently wasteful.This gave certain results in raising the standard of living of people in general, and especially of certain groups, the negative consequences of the functioning of this system are significant: environmental problems, depletion of natural capital, lack of fresh water, food, energy, great poverty, inequality of people and countries. All this poses a threat to future generations. From the point of view of the main criterion – environmental pollution (mainly carbon dioxide) – nuclear energy is absolutely "green". In terms of stability and production capacity, it is significantly better than any other "green" sources. The obtained results can be used to develop modern economic models of development.

Stranded in the wastelands? Natural capital depletion and bank deposit reallocation

Stranded in the wastelands? Natural capital depletion and bank deposit reallocation

Revelation of Coupled Ecosystem Quality and Landscape Patterns for Agroforestry Ecosystem Services Sustainability Improvement in the Karst Desertification Control

Since the 1950s, the rapid depletion of natural capital due to human activities has led to a growing global demand for ecological and socioeconomic sustainability, driving the development of agroforestry. Although agroforestry ecosystems can maintain sustainable land resources and maximize land productivity, their quality continues to fluctuate. Moreover, there is no clear review of studies addressing the impact of the evolution of agroforestry landscape patterns on their ecosystems, and to fill this gap, we conducted an inclusive review. A total of 163 publications related to agroforestry ecosystem quality and landscape patterns (ELA) that met a set of inclusion criteria were obtained through the Scopus database using the literature review method of searching, appraisal, and synthesis report. The objectives were to summarize the research progress on ELA, reveal the dynamic coupling mechanism between landscape pattern evolution and ecosystem quality, explore the role of landscape pattern optimization in ecological processes and services in agroforestry, and suggest future research and policy directions. Although the understanding of landscape patterns and ecological processes has been deepened, there are limitations in the study of scales, habitats, and other aspects. It is emphasized that understanding the interaction between agroforestry and other landscape elements in spatiotemporal organization is a prerequisite for promoting sustainable benefits, and that the challenges of spatiotemporal dynamics are integrated to scientifically optimize agroforestry landscape patterns. Finally, it is necessary to gain revelations based on the coupling relationship of ELA, through scientific management of agroforestry landscapes, in order to sustainably consolidate the effectiveness of karst rocky desertification (KRD) control and to enhance human welfare.

Agricultural co-operatives for managing natural capital to achieve UN Sustainable Development Goals 12–15: A conceptual framework

Natural capital is becoming an important topic for global biodiversity and sovereign risk of nations for their food supply chains which can be linked to the United Nations Sustainable Development Goals 12–15. In this paper we explored the literature to develop a conceptual framework to determine how primary industry co-operatives (such as in agriculture and aquaculture) can play a role in managing natural capital. The conceptual framework developed shows that members of co-operatives have roles to act within their organisation that utilise natural capital. Acting out these roles may see the co-operative become pro-active in governing its natural capital based on economic and social goals which are guided by the co-operative principles and values. Working with the financial services sector, co-operatives would be able to engage with their members to educate and share knowledge on strategies to manage and/or mitigate the risk of natural capital depletion. This can be managed through farm management techniques and financial instruments such as credit and insurance. • Co-operatives can serve as a platform to manage natural capital for agricultural ecosystems. • Co-operative members can play an active role engaging with natural capital management. • Co-operatives should be considering natural capital as part of its governance. • Co-operatives can serve as a facilitator of information, education and knowledge to collectively manage natural capital. • Financial services institutions can work with co-operatives to lower their risk to natural capital depletion. • Co-operatives can work with financial institutions to provide access to financial services at lower costs.

Natural capital accounting of cultivated land based on three-dimensional ecological footprint model-- A case study of the Beijing-Tianjin-Hebei region

The fairness of the utilization of cultivated land resources is essential for the balanced development of the region, but there are few researches to analyze it. Against the background of the urgent need for farmland protection and ecological compensation, this paper takes cultivated land as the research object and uses a three-dimensional ecological footprint model to account for and analyze the utilization of natural capital stock and flow of cultivated land in Beijing-Tianjin-Hebei region from 2009 to 2016 in terms of footprint breadth and depth, so as to provide reference for cultivated land protection, ecological compensation and even coordinated regional ecological-economic development. The results show that from 2009 to 2016, the ecological footprint breadth of cultivated land in Beijing-Tianjin-Hebei region was generally low and the footprint depth was generally high, and the ecological footprint depth of cultivated land in the region as a whole tended to increase, except for Zhangjiakou and Chengde, which were able to achieve self-sufficiency in flow capital, 85% of the cities showed the phenomenon of depletion of cultivated land flow capital and intensification of stock capital depletion. After 2010, the overall Gini coefficient of the ecological footprint of cultivated land in the Beijing-Tianjin-Hebei area was less than 0.4, and the use of natural capital from cultivated land was relatively balanced. The study concludes that under the strategic role of Beijing-Tianjin-Hebei integration and collaborative development, the equity of natural capital utilization of cultivated land in each city in the Beijing-Tianjin-Hebei region has been improved, but the level of creating and utilizing natural capital flows of cultivated land still needs to be improved, and ecological protection of cultivated land needs to be further strengthened; the excessive depletion of natural capital of cultivated land caused by agricultural production can be used as a reference basis for cross-regional ecological compensation of cultivated land, thus supporting the ecological value of cultivated land. Over-consumption of natural capital from agricultural land caused by agricultural production can be used as a baseline for interregional ecological compensation of agricultural land, thus supporting the realization of the ecological value of agricultural land.

Exploring the Effects of Natural Capital Depletion and Natural Disasters on Happiness and Human Wellbeing: A Study in China.

Since recent climate change has caused more natural disasters (NDs) than ever before, there is a worldwide concern that this could have both short-term and long-term economic and health consequences. This is perhaps the first attempt to explore the effects of natural capital (NC) and NDs on the human health and wellbeing of China over the period 1993–2020. The study has compiled data from World Bank, World Value Survey, UNDP, EM-DAT, and IMF for analysis. The empirical analysis is done by using the autoregressive distributed lag model. Empirical results prove that NC has a positive and significant effect on happiness, health, and human wellbeing in the long run. The results also show that NDs significantly reduce happiness and human wellbeing in the long run. The results recommend some important policy implications.

DAESim: A dynamic agro-ecosystem simulation model for natural capital assessment

Threats to sustainable food production are accelerating due to climate change, population growth, depletion of natural capital, and global market instability. This causes significant risks to farmers, consumers, and financial and policy institutions. Understanding agro-ecosystems, and how varying management styles can impact their performance is critical to future wellbeing. To better understand and manage agricultural production, we have developed a dynamic simulation model that accounts for the core natural capital components of agro-ecosystems, including climate, soil, carbon, water, nitrogen, phosphorus, microorganisms, erosion, crops, farm animals and plants. Dynamic Agro-Ecosystem Simulation (DAESim) model can be used to simulate dynamics of soil health and project it into the future to assess vulnerabilities and resilience. This knowledge can inform and guide investment decisions by financial institutions, insurance companies, farmers, and governmental agencies. Here, we describe the basic model structure, sensitivity, and calibration results. We then run a few scenarios to demonstrate the model's ability to analyze alternative agro-ecosystem management options.

Economic freedom vs. egalitarianism: An empirical test of weak & strong sustainability, 1970–2017

AbstractMany argue that free markets drive climate change and harm environmental sustainability. They suggest that democratic controls over profligate capital and unregulated markets better secure economic wellbeing and environmental objectives. Eco‐modernists, contrarily, argue that economic freedoms generate entrepreneurial technological change for reducing poverty and increasing environmental quality since people's demands for cleaner consumption are likely to be met by markets, and free markets are less likely to be affected by rent‐seeking. Moreover, democratic publics also demand higher consumption and the protection of jobs in dirty industry, which would work against environmental causes. This study contrasts the effects of economic freedom and egalitarian democracy on environmental sustainability and atmospheric pollution, assessed as both weak and strong sustainability. The results show that economies that are friendlier to free markets increase physical capital (wealth) with lower damage to total environmental sustainability, measured as depletion of physical, human, and natural capital, including atmospheric pollution. Egalitarian democracy consistently reduces economic sustainability and increases atmospheric pollution. There is some evidence for an inverted‐U shape relationship between egalitarianism and CO2 emissions independently of economic freedom and the level of development. The results are robust to a battery of testing procedures, alternative models and data, different sample sizes, a barrage of relevant diagnostic tests of robustness, and potential endogeneity.

Application of circular economy framework for reducing the impacts of climate change: A case study from India on the evaluation of carbon and materials footprint nexus

In light of the Paris Agreement 2015 and the emerging government-wide policies towards instigating a transition from linear to Circular Economy (CE), it has become critical to investigate the potential impact of CE strategies on climate change. The recent upsurge in economic activities and growing consumerism has driven the demand for raw materials contributing to a considerable level of Greenhouse Gases (GHGs) emissions in the atmosphere, conducive to severe climate breakdowns, jeopardizing the environment and biodiversity. The current study aims at establishing a detailed understanding on CE strategies vis-à-vis Sustainable Development Goals (SDG) and resource-energy conflict impacting climate change to underpin the priority sectors such as agriculture and allied activities, industry, construction, electricity, and transportation; exercising the CE Regenerate Share Optimize Loop Virtualize Exchange (ReSOLVE) framework for the National Capital Region (NCR) of India. The CE strategies quantified through input-output analysis and Leontief inverse matrix, identify the construction and transportation sector as the highest contributor towards Carbon Footprint (CF) and Material Footprint (MF) ranging from 4.0–8.8 t/capita and 5.6–7.3 t/capita respectively. Integrating the ReSOLVE strategies of CE and the priority sectors linked to the nation's economy through stratified components of design, consumption and recycling can reduce CF and MF by 0.18–15.7% and 5.3–25% respectively. In low and middle-income countries, the study is envisaged to leverage decision-makers in adopting sustainable management practices as an integral part of policy interventions, facilitating solutions to both natural capital depletion and environmental degradation challenges to produce better Gross Domestic Product (GDP) outcomes.

Does natural capital depletion hamper sustainable development? Panel data evidence

This paper addresses growing concerns that the global decline in natural capital hurts wellbeing in the long-run. We examine empirically how natural capital depletion affects sustainable development as measured by a positive change in the United Nation's Inclusive Wealth indicator. Drawing on panel data for 140 countries between 1990 and 2010, within-country analysis reveals that many countries convert their depleted natural capital sufficiently into human- and produced capital such that the comprehensive stock of wealth grows. However, some developed economies are struggling to harness their natural wealth for sustainable development. The policy implication is that there is no universally applicable recipe for the effective management of countries' natural resources. Countries that are poorly endowed with human- and produced capital, in particular, may have a window of opportunity in which natural capital depletion is temporarily able to foster rather than hamper sustainable development.

Financial instruments of “green” economy development in Russia

Environmental problems are getting worse every year. The root cause of green finance is the climate change, pollution and the depletion of natural capital that threaten Russia’s competitiveness and productivity. Green financing means providing finance while enhancing the resource efficiency and reducing the impact on the environment and the global climate. Balanced adherence to financial, economic and environmental criteria is the main foundation. The new emerging financial instruments of a green economy do not have technical fundamental differences, but qualitatively form new conditions for the responsible investment process. The Russian green finance market emerged in 2018. The past period can be characterized by both a quantitative and a qualitative breakthrough in the system of green finance in Russia. At the same time, the issues of developing a mechanism of state support for the activities of non-profit organizations in the field of green finance, the participation of non-profit organizations in the implementation of environmental projects through the development of green financing instruments require consideration.

The Role of Social Enterprises in Urban Sustainability: Insights from Anyang, South Korea

The collaboration of Social enterprises (SEs) and the government to maximize the socio-economic prosperity of citizens, including minor ethnic groups and low-income classes, is one of the key tools that leads to the sustainable development of a city. Notably, though, is that a seamless coordination of development processes between SEs and relevant government agencies is often challenging to attain because it is usually affected by several factors. Some of these factors include lack of enough funding, depletion of natural resources and inadequate social capital. Besides such factors, there has also been another conspicuous factor— the increasing number of emerging cities, an example being the City of Anyang, which is located in Gyeonggi province of South Korea. Based on the issue of emerging cities, the objective of conducting this research was to find out what mechanisms of SEs can positively affect sustainable development and urban regeneration for the City of Anyang. As for the methodology, primary data were collected by use of questionnaires and the methodologies of factor analysis and correlation analysis tools, such as Cronbach and varimax rotation, applied to evaluate the results. The sample of the survey consisted of 1062 stakeholders recruited from over 18 economic sectors. The findings suggest that a significant number of respondents demonstrated a low confidence level in the social enterprises’ abilities to address all the emerging economic and social development issues. Regardless of the low levels of confidence exhibited by the study participants in the ability of SEs to address emerging economic and social development issues, other factors, such as employment creation, support for vulnerable groups, and environmental conservation had significantly high scores. Based on these findings, it is a reasonable assertion that SEs can effectively use these abilities to affect urban regeneration and sustainable development positively. Unfortunately, other values associated with enterprises, such as promoting access to quality education, affordable housing, addressing financial exclusion and disability, provision of the grants to other organizations, and support to other social enterprises, were ranked below the expected level. Based on the results from the study, it is evident that instruments of SEs, such as supporting the vulnerable population, the creation of employment opportunities, and environmental conservation positively influence Anyang’s urban regeneration process and its sustainable development.

Quantitative analysis of natural capital utilization in the provinces along the Silk Road Economic Belt (China section)

The provinces along the Silk Road Economic Belt in China section is undergoing a rapid economic development, but meanwhile poses a severe situation for the ecological environment. In this paper, we involved the pollution discharge account to analyse the pressure of natural capital depletion on the ecological environment from 2005 to 2016 with combination of improved ecological footprint and scissors difference. The results show that: (1) The ecological footprint (EF) in this region almost doubled over the past 12 years, while the ecological capacity (EC) was rather low and experienced a slightly decrease. With increase of ecological deficit (ED), the capital flow could not maintain economic and social development recently, and the depletion of the natural capital stock has become general. (2) Spatially, the variation of EF varies greatly in different provinces, but as a whole, the per capita EF in Northwest region was much higher than that in Southwest. The provinces with high EF depth concentrated in the east and north margin with relatively better economy, while the provinces with high EF size concentrated in northwest region with abundant resources and low population density. (3) The decrease of scissors difference between EF depth and EF size indicates that positive effects of ecological restoration projects have been exerted and the conflict between supply and demand of natural resources tends to be eased to some extent. These findings could provide specific policy implications for this region to improve the efficiency of natural capital utilization and promote the coordinated development of economy and environment.