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Analysis of genuine saving and potential green net national income: Portugal, 1990-2005

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  • Mota, Rui Pedro
  • Domingos, Tiago
  • Martins, Victor

Abstract

The context of this paper is the measurement of welfare and weak sustainability (defined as non-declining utility) in dynamic economies, i.e., comprehensive or green accounting. We estimate green net national income (GNNI) and genuine saving (GS) for Portugal, for the years 1990 to 2005, accounting for the disamenity of air pollution emissions, the depreciation of commercial forests and the value of time, discussing the implications of the assumptions underlying the inclusion of these terms in the green accounting model. The influence of short-run cycles is analyzed by estimating GNNI excluding business cycles. Our results suggest that business cycles affect the sustainability message of GNNI. We find that potential GNNI is growing and GS is positive in the analyzed period, thereby not indicating a weak sustainability problem in Portugal, although both depict a trend towards unsustainability. Excluding technological progress there is a contradiction in the sustainability message of GNNI and GS.

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  • Mota, Rui Pedro & Domingos, Tiago & Martins, Victor, 2010. "Analysis of genuine saving and potential green net national income: Portugal, 1990-2005," Ecological Economics, Elsevier, vol. 69(10), pages 1934-1942, August.
    • Handle: RePEc:eee:ecolec:v:69:y:2010:i:10:p:1934-1942
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    Cited by:

    1. Mubashir Qasim & Les Oxley & Eoin McLaughlin, 2020. "Genuine savings as a test of New Zealand weak sustainability," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(1), pages 89-127, January.
    2. Nick Hanley & Louis Dupuy & Eoin McLaughlin, 2015. "Genuine Savings And Sustainability," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 779-806, September.
    3. Eoin McLaughlin & Cristián Ducoing & Les Oxley, 2024. "Tracing Sustainability in the Long Run: Genuine Savings Estimates 1850–2018," NBER Chapters, in: Measuring and Accounting for Environmental Public Goods: A National Accounts Perspective, National Bureau of Economic Research, Inc.
    4. Nick Hanley & Les Oxley & David Greasley & Eoin McLaughlin & Matthias Blum, 2016. "Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 313-338, February.
    5. Luke Mcgrath & Stephen Hynes & John Mchale, 2022. "Reassessing Ireland’s economic development through the lens of sustainable development [Sustainability and the measurement of wealth]," European Review of Economic History, European Historical Economics Society, vol. 26(3), pages 399-422.
    6. McGrath, Luke & Hynes, Stephen & McHale, John, 2019. "Augmenting the World Bank's estimates: Ireland's genuine savings through boom and bust," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    7. Collins, Ross D. & Selin, Noelle E. & de Weck, Olivier L. & Clark, William C., 2017. "Using inclusive wealth for policy evaluation: Application to electricity infrastructure planning in oil-exporting countries," Ecological Economics, Elsevier, vol. 133(C), pages 23-34.
    8. Hoff, Jens V. & Rasmussen, Martin M.B. & Sørensen, Peter Birch, 2021. "Barriers and opportunities in developing and implementing a Green GDP," Ecological Economics, Elsevier, vol. 181(C).
    9. Koji Tokimatsu & Rieko Yasuoka & Masahiro Nishio & Kazuhiro Ueta, 2014. "A study on forecasting paths of genuine savings and wealth without and with carbon dioxide constraints: development of shadow price functions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(3), pages 723-745, June.
    10. Luke McGrath & Stephen Hynes & John McHale, 2022. "The Air we Breathe: Estimates of Air Pollution Extended Genuine Savings for Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(1), pages 161-188, March.
    11. Koji Tokimatsu & Rintaro Yamaguchi & Masayuki Sato & Rieko Yasuoka & Masahiro Nishio & Kazuhiro Ueta, 2012. "Measuring sustainable development for the future with climate change mitigation; a case study of applying an integrated assessment model under IPCC SRES scenarios," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 14(6), pages 915-938, December.
    12. Lindmark, Magnus & Acar, Sevil, 2013. "Sustainability in the making? A historical estimate of Swedish sustainable and unsustainable development 1850–2000," Ecological Economics, Elsevier, vol. 86(C), pages 176-187.
    13. Mota, Rui Pedro & Cunha-e-Sá, Maria A., 2019. "The Role of Technological Progress in Testing Adjusted Net Savings: Evidence from OECD Countries," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    14. Mota, Rui Pedro & Domingos, Tiago, 2013. "Assessment of the theory of comprehensive national accounting with data for Portugal," Ecological Economics, Elsevier, vol. 95(C), pages 188-196.

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