IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v70y2011i3p503-512.html
   My bibliography  Save this article

Assessing sustainability, a comprehensive wealth accounting prospect: An application to Mozambique

Author

Listed:
  • Ollivier, Timothée
  • Giraud, Pierre-Noël

Abstract

We estimate the wealth of Mozambique in 2000 and 2005 in order to assess the sustainability of its development path. Our methodology builds on Arrow et al. (2010). We show that Mozambican wealth increases through human and physical capital accumulation, while the pressure on natural capital remains low. The growth of total factor productivity enhances the outcome of the different capital assets, but population growth has a strong downward effect on wealth per capita. Results suggest that Mozambican development was sustainable between 2000 and 2005, but these remain ambiguous and are highly sensitive to data and assumptions used.

Suggested Citation

  • Ollivier, Timothée & Giraud, Pierre-Noël, 2011. "Assessing sustainability, a comprehensive wealth accounting prospect: An application to Mozambique," Ecological Economics, Elsevier, vol. 70(3), pages 503-512, January.
    • Handle: RePEc:eee:ecolec:v:70:y:2011:i:3:p:503-512
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921-8009(10)00387-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kenneth Arrow & Partha Dasgupta & Karl-Göran Mäler, 2003. "Evaluating Projects and Assessing Sustainable Development in Imperfect Economies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 647-685, December.
    2. Hamilton, Kirk & Clemens, Michael, 1999. "Genuine Savings Rates in Developing Countries," The World Bank Economic Review, World Bank, vol. 13(2), pages 333-356, May.
    3. Tol, Richard S. J., 2005. "The marginal damage costs of carbon dioxide emissions: an assessment of the uncertainties," Energy Policy, Elsevier, vol. 33(16), pages 2064-2074, November.
    4. Kenneth Arrow & Partha Dasgupta & Lawrence Goulder & Gretchen Daily & Paul Ehrlich & Geoffrey Heal & Simon Levin & Karl-Göran Mäler & Stephen Schneider & David Starrett & Brian Walker, 2004. "Are We Consuming Too Much?," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 147-172, Summer.
    5. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    6. Martin L. Weitzman, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(1), pages 156-162.
    7. Asheim, Geir B. & Buchholz, Wolfgang & Hartwick, John M. & Mitra, Tapan & Withagen, Cees, 2007. "Constant savings rates and quasi-arithmetic population growth under exhaustible resource constraints," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 213-229, March.
    8. Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, vol. 67(5), pages 972-974, December.
    9. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    10. Karl-Göran Mäler, 1991. "National accounts and environmental resources," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 1(1), pages 1-15, March.
    11. Lane, Philip R. & Milesi-Ferretti, Gian Maria, 2007. "The external wealth of nations mark II: Revised and extended estimates of foreign assets and liabilities, 1970-2004," Journal of International Economics, Elsevier, vol. 73(2), pages 223-250, November.
    12. Benfica, Rui M.S. & Zandamela, Julieta & Miguel, Arlindo & de Sousa, Natercia, 2005. "The Economics of Smallholder Households in Tobacco and Cotton Growing Areas of the Zambezi Valley of Mozambique," Food Security Collaborative Working Papers 56064, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    13. repec:bla:scandj:v:96:y:1994:i:2:p:257-65 is not listed on IDEAS
    14. World Bank, 2005. "Mozambique : Country Economic Memorandum, Sustaining Growth and Reducing Poverty," World Bank Publications - Reports 8324, The World Bank Group.
    15. World Bank, 2005. "World Development Indicators 2005," World Bank Publications - Books, The World Bank Group, number 12426.
    16. Hartwick, John M., 1990. "Natural resources, national accounting and economic depreciation," Journal of Public Economics, Elsevier, vol. 43(3), pages 291-304, December.
    17. repec:bla:scandj:v:88:y:1986:i:1:p:141-49 is not listed on IDEAS
    18. Lane, Philip & Milesi-Ferretti, Gian Maria, "undated". "External Wealth of Nations," Instructional Stata datasets for econometrics extwealth, Boston College Department of Economics.
    19. repec:wbk:wbpubs:12425 is not listed on IDEAS
    20. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    21. Vincent, Jeffery, 1996. "Resource Depletion And Economic Sustainability In Malaysia," Harvard Institute for International Development (HIID) Papers 294087, Harvard University, Kennedy School of Government.
    22. Pearce, David W. & Atkinson, Giles D., 1993. "Capital theory and the measurement of sustainable development: an indicator of "weak" sustainability," Ecological Economics, Elsevier, vol. 8(2), pages 103-108, October.
    23. Susana Ferreira & Kirk Hamilton & Jeffrey R. Vincent, 2008. "Comprehensive Wealth and Future Consumption: Accounting for Population Growth," The World Bank Economic Review, World Bank, vol. 22(2), pages 233-248, May.
    24. Giles Atkinson & Kirk Hamilton, 2007. "Progress along the path: evolving issues in the measurement of genuine saving," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 43-61, May.
    25. Kenneth J. Arrow & Partha Dasgupta & Lawrence H. Goulder & Kevin Mumford & Kirsten Oleson, 2010. "China, the US, and Sustainability: Perspectives Based on Comprehensive Wealth," International Economic Association Series, in: Geoffrey Heal (ed.), Is Economic Growth Sustainable?, chapter 4, pages 92-144, Palgrave Macmillan.
    26. Partha Dasgupta, 2009. "The Welfare Economic Theory of Green National Accounts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(1), pages 3-38, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Youmanli Ouoba, 2023. "Testing the necessary conditions for sustainability in the mining sector in Burkina Faso," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 1-12, January.
    3. 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.
    4. Koji Tokimatsu & Rintaro Yamguchi & Masayuki Sato & Rieko Yasuoka & Masahiro Nishio & Kazuhiro Ueta, 2014. "Assessing future sustainability by forecast of Genuine Savings paths," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 16(4), pages 359-379, October.
    5. 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.
    6. Collins, Ross D. & Selin, Noelle E. & de Weck, Olivier L. & Clark, William C., 2016. "Using Inclusive Wealth for Policy Evaluation: Application to Electricity Infrastructure Planning in Oil-Exporting Countries," Working Paper Series 16-010, Harvard University, John F. Kennedy School of Government.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ferreira, Susana & Moro, Mirko, 2010. "Constructing Genuine Savings Indicators for Ireland, 1995-2005," Stirling Economics Discussion Papers 2010-10, University of Stirling, Division of Economics.
    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. Adrian Boos, 2015. "Genuine Savings as an Indicator for “Weak” Sustainability: Critical Survey and Possible Ways forward in Practical Measuring," Sustainability, MDPI, vol. 7(4), pages 1-37, April.
    4. Rintaro Yamaguchi & Masayuki Sato & Kazuhiro Ueta, 2016. "Measuring Regional Wealth and Assessing Sustainable Development: An Application to a Disaster-Torn Region in Japan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(1), pages 365-389, October.
    5. Timothée, Ollivier, 2009. "Is Mozambican Growth Sustainable? A Comprehensive Wealth Accounting Prospect," MPRA Paper 16603, University Library of Munich, Germany.
    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. Luke McGrath & Stephen Hynes & John McHale, 2020. "Linking Sustainable Development Assessment in Ireland and the European Union with Economic Theory," The Economic and Social Review, Economic and Social Studies, vol. 51(2), pages 327-355.
    8. 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.
    9. McLaughlin, Eoin & Ducoing, Cristián & Hanley, Nick, 2024. "Challenges of wealth-based sustainability metrics: A critical appraisal," Ecological Economics, Elsevier, vol. 224(C).
    10. Thomas Aronsson & Karl-Gustaf Löfgren (ed.), 2010. "Handbook of Environmental Accounting," Books, Edward Elgar Publishing, number 12796.
    11. Dasgupta, Partha, 2010. "The Place of Nature in Economic Development," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4977-5046, Elsevier.
    12. Pezzey, J.C.V.John C. V., 2004. "One-sided sustainability tests with amenities, and changes in technology, trade and population," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 613-631, July.
    13. Koji Tokimatsu & Louis Dupuy & Nick Hanley, 2019. "Using Genuine Savings for Climate Policy Evaluation with an Integrated Assessment Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(1), pages 281-307, January.
    14. 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.
    15. Giles Atkinson & Kirk Hamilton, 2007. "Progress along the path: evolving issues in the measurement of genuine saving," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 43-61, May.
    16. Louis Dupuy, 2012. "International Trade and Sustainability : A survey," Working Papers hal-00701426, HAL.
    17. Louis Dupuy, 2012. "International Trade and Sustainability: A survey," Larefi Working Papers 201201, Larefi, Université Bordeaux 4.
    18. Arrow, Kenneth J. & Dasgupta, Partha & Goulder, Lawrence H. & Mumford, Kevin J. & Oleson, Kirsten, 2012. "Sustainability and the measurement of wealth," Environment and Development Economics, Cambridge University Press, vol. 17(3), pages 317-353, June.
    19. Bazhanov, A., 2011. "The Dependence of the Potential Sustainability of a Resource Economy on the Initial State: a Comparison of Models Using the Example of Russian Oil Extraction," Journal of the New Economic Association, New Economic Association, issue 12, pages 77-100.
    20. John C. V. Pezzey, 2004. "Sustainability Policy and Environmental Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(2), pages 339-359, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:70:y:2011:i:3:p:503-512. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.